On Wednesday the S&P/ASX 200 index bounced back from Tuesday’s savage sell off. The benchmark index climbed 0.5% to 7,031.5 points.
Will the local share market be able to build on this on Thursday? Here are five things to watch:
ASX 200 poised to trade flat.
It looks set to be a subdued day of trade for the S&P/ASX 200 index on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day flat. This follows a positive night of trade on Wall Street. In late trade the Dow Jones is up 0.5%, the S&P 500 is 0.1% higher, and the Nasdaq index is trading 0.2% higher.
Oil prices mixed.
Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch on Thursday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.75% to US$53.09 a barrel and the Brent crude oil price has risen 0.15% to US$59.60 a barrel. Oil prices have been moving after coronavirus concerns were partially offset by talk of an OPEC supply cut extension.
Gold price edges higher.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be on the rise on Thursday after the gold price edged higher. According to CNBC, the spot gold price is up 0.3% to US$1,574.80 an ounce. The price of the precious metal rose amid coronavirus concerns.
The Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch on Thursday when it releases its second quarter production update. The iron ore producer is widely expected to have had another bumper quarter thanks to sky high iron ore prices. Investors will no doubt be hoping for an update in relation to its dividend plans for FY 2020.
Treasury Wine upgraded.
The Treasury Wine Estates Ltd (ASX: TWE) share price could be on the move again on Thursday. This morning Goldman Sachs upgraded the wine company’s shares to a hold rating following yesterday’s sizeable share price decline. Goldman has a $12.30 price target on Treasury Wine’s shares. Though, it is worth noting that the broker still has concerns over its short term outlook.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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.