On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower amid coronavirus concerns. The benchmark index fell 1.5% to 5,920.3 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch
ASX 200 expected to rebound.
It looks set to be a better day of trade for the ASX 200 on Thursday. According to the latest SPI futures, the benchmark index is expected to open the day 46 points or 0.8% higher. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 0.7%, the S&P 500 climb 0.8%, and the Nasdaq jump 1.45%. The latter index saw Apple shares hit a record high overnight.
Afterpay share price tipped to hit $101.
The Afterpay Ltd (ASX: APT) share price has been an incredible performer this year but could still go a lot higher from here. This is the view of analysts at Morgan Stanley. According to the AFR, a note to clients on Wednesday evening reveals that the broker has lifted its price target from $36.00 to $101.00. It notes that it is “demonstrating better-than-expected credit quality control, while accelerating sales growth and diversifying away from the fashion category.”
Oil prices rise.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher after oil prices recovered overnight. According to Bloomberg, the WTI crude oil price is up 0.65% to US$40.88 a barrel and the Brent crude oil price is up 0.5% to US$43.31 a barrel. Improving gasoline demand in the United States supported oil prices.
Gold price jumps again.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be positive performers today after the gold price jumped again. According to CNBC, the spot gold price pushed 0.45% higher to US$1,818.40 an ounce. Demand for safe haven assets supported the price of the precious metal.
Vicinity share purchase plan flops.
The Vicinity Centres (ASX: VCX) share price will be on watch after revealing that its share purchase plan flopped. The shopping centre operator’s non-underwritten share purchase plan was aiming to raise $200 million but fell well short of this. Vicinity Centres was only able to raise $32.6 million after receiving just 2,400 applications from eligible shareholders. This follows the successful completion of a $1.2 billion institutional placement at $1.48 per share at the start of June.
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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 AFTERPAY T FPO. 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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