On Wednesday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and dropped lower. The benchmark index fell 0.4% to 5,384.6 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to fall again.
The ASX 200 looks set to fall again on Thursday after a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1% or 51 points lower this morning. On Wall Street the Dow Jones fell 0.9%, the S&P 500 dropped 0.7%, and the Nasdaq index defied the other indices and climbed 0.5%. .
Oil prices end winning streak.
It could be a disappointing day of trade for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices snapped their five-day winning streak. According to Bloomberg, the WTI crude oil price fell 1.8% to US$24.11 a barrel and the Brent crude oil price has dropped 3.6% to US$29.87 a barrel.
Gold price tumbles lower.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure after the gold price tumbled lower. According to CNBC, the spot gold price has fallen 1.4% to US$1,714.90 an ounce. The price of the precious metal dropped lower after the U.S. dollar strengthened as lockdowns ease.
Virgin Money UK results.
The Virgin Money UK PLC (ASX: VUK) share price will be on watch this morning following the after-hours release of its interim results. The UK-based bank reported an underlying profit on ordinary activities before tax of £120 million. This was down 58% on the prior corresponding period. This was primarily due to a COVID-19 impairment charge of £164 million. Over on the London Stock Exchange, the company's shares jumped 6% higher overnight.
Medibank given sell rating.
According to a note out of Goldman Sachs, its analysts believe the Medibank Private Ltd (ASX: MPL) share price is still overvalued. This morning the broker slapped a sell rating and $2.69 price target on the private health insurer's shares. Goldman continues to see a tough outlook for the industry due to the softer economic backdrop and affordability issues.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.
