5 things to watch on the ASX 200 on Thursday

Magellan Financial Group Ltd (ASX:MFG) and Newcrest Mining Limited (ASX:NCM) shares will be on watch on the ASX 200 on Thursday…

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The S&P/ASX 200 Index (ASX: XJO) was on form again on Wednesday and stormed notably higher. The benchmark index ended the day up a sizeable 1.8% to 5,941.6 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to race higher.

The ASX 200 looks set to race higher again on Thursday. According to the latest SPI futures, the benchmark index is poised to jump 72 points or 1.2% at the open. This follows a very positive night of trade on Wall Street, which saw the Dow Jones jump 2.05%, the S&P 500 rise 1.35%, and the Nasdaq index climb 0.8%.

6,000 points in sight.

With ASX 200 futures pointing to a strong rise at the open, the index looks set to smash through the symbolic 6,000 points market today. It has been almost three months since the benchmark index traded at this level. Investors will be hoping it is onwards and upwards from here.

Oil prices soften.

Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.35% to US$36.68 a barrel and the Brent crude oil price has fallen 0.55% to US$39.34 a barrel. Traders appear nervous ahead of an announcement by OPEC.

Gold price sinks lower.

Improving risk sentiment has hit safe haven assets like gold overnight, which could mean miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) come under pressure today. According to CNBC, the spot gold price is down 1.9% to US$1,700.90 an ounce.

Magellan rated neutral.

The Magellan Financial Group Ltd (ASX: MFG) share price may be fully valued according to analysts at Goldman Sachs. The broker has reiterated its neutral rating and lifted its price target on the fund manager's shares to $51.69. Goldman believe Magellan is on track to deliver strong performance fees in the second half. However, it feels this is already priced into its shares.

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.

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