On Wednesday the S&P/ASX 200 Index (ASX: XJO) returned to form and stormed notably higher. The benchmark index zoomed 3.6% higher to end the day at 5,258.6 points.
Will the local share market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to slide lower.
The ASX 200 looks set to give back its gains on Thursday after a poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 147 points or 2.8% at the open. In late trade in the United States, the Dow Jones is down 4.3%, the S&P 500 has fallen 4.3%, and the Nasdaq index is 4.2% lower. A significant spike in coronavirus cases in the U.S. spooked the market.
Oil prices mixed.
Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.2% to US$20.72 a barrel and the Brent crude oil price is down a sizeable 5.4% to US$24.93 a barrel.
Gold price pushes higher.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could push higher today after a rise in the gold price. According to CNBC, the spot gold price is up 0.25% to US$1,600.20 an ounce. Demand for safe haven assets increased after U.S. equities were sold off.
IDP Education and Webjet scheduled to return.
The IDP Education Ltd (ASX: IEL) share price and the Webjet Limited (ASX: WEB) share price will be on watch on Thursday when they return from their suspensions. Both companies have been raising funds in order to secure their futures during these incredibly tough trading conditions. IDP Education is aiming to raise $190 million, whereas Webjet is asking for $275 million from investors.
Commonwealth Bank life insurance update.
The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch following a late update on its life insurance business on Wednesday. According to the release, the bank has received further proceeds of approximately $865 million for the divestment of its CommInsure Life business to AIA Group. These proceeds result in a pro forma increase to its Common Equity Tier 1 ratio of approximately 19 basis points on an APRA basis.
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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 Webjet Ltd. 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.
