On Wednesday the S&P/ASX 200 index had another day to forget. The benchmark index crashed a further 1.6% to 6,606.5 points.
Will the local market be able to bounce back from this on Thursday? Here are five things to watch:
ASX expected to rebound.
After a couple of very disappointing days of trade, the S&P/ASX 200 index looks set to return to form on Thursday. According to the latest SPI futures, the ASX 200 index is expected to jump 59 points or 0.9% at the open. This follows a positive night on Wall Street which in late trade sees the Dow Jones up 0.8%, the S&P 500 up 0.8%, and the Nasdaq up 0.7%.
The Metcash Limited (ASX: MTS) share price will be one to watch on Thursday when it releases its half year results. According to a note out of Goldman Sachs, it is expecting Metcash to report a 0.3% increase in sales to $6.3 billion and a 1% lift in EBIT (before one-offs) to $144.4 million. The Food pillar is expected to be the main driver of growth during the half.
Oil prices surge higher.
It looks set to be a good day for energy producers such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 4.3% to US$58.53 a barrel and the Brent crude oil price has jumped 3.9% to US$63.17 a barrel. A sharper than expected decline in U.S. inventories sent oil prices charging higher.
Gold price tumbles.
Gold miners including Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) could be on the slide today after the spot gold price tumbled lower overnight. According to CNBC, the spot gold price is down 0.4% to US$1,479.5 an ounce after global share markets returned to form.
CSL rated as a buy.
The CSL Limited (ASX: CSL) share price could be on the move today after analysts at Goldman Sachs reiterated their buy rating and $300 price target on the biotherapeutics company’s shares. The broker was pleased with its R&D update in Sydney and appears particularly excited by CSL 112. This is a breakthrough medicine targeting secondary heart attacks.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.