The Motley Fool

5 things to watch on the ASX 200 on Thursday

On Wednesday the S&P/ASX 200 Index (ASX: XJO) continued its positive run and pushed higher again. The benchmark index climbed 0.2% to 5,965.7 points.

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

ASX 200 to crash lower.

The ASX 200 looks set to crash lower on Thursday after a very poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is poised to drop 95 points or 1.6% lower at the open. On Wall Street the Dow Jones sank 2.7%, the S&P 500 fell 2.6%, and the Nasdaq index tumbled 2.2%. Investors were selling U.S. stocks amid concerns over a spike in coronavirus cases.

Oil prices sink lower.

Record U.S. crude inventories and pandemic resurgence concerns have sent oil prices crashing lower overnight. This could weigh on the likes of Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) on Thursday. According to Bloomberg, the WTI crude oil price is down 5.6% to US$38.13 a barrel and the Brent crude oil price is 5.3% lower to US$40.37 a barrel.

Qantas $1 billion equity raising.

The Qantas Airways Limited (ASX: QAN) share price could be placed in a trading halt today. Last night the AFR speculated that the airline operator has called in bankers and could be about to launch a $1 billion equity raising. This would be the first time during the pandemic that Qantas has raised funds this way.

Gold price softens.

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could take a tumble today after the gold price fell despite the market volatility. According to CNBC, the spot gold price is down 0.4% to US$1,774.50 an ounce overnight. Investors appear to have rotated into cash assets.

Sonic Healthcare given buy rating.

The Sonic Healthcare Limited (ASX: SHL) share price was a strong performer on Wednesday but could still be heading higher from here. According to analysts at Goldman Sachs, they believe the healthcare company is a buy with a $34.50 price target. This is almost 14% higher than its last close price. The broker was pleased to see the company reinstate guidance well ahead of consensus estimates.

3 "Double Down" Stocks To Ride The Bull Market

Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

He's so confident in their future prospects that he has issued "double down" buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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.

Related Articles...