On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and dropped lower for a second day in a row. The benchmark index fell 0.2% to 6,006.4 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 very positive day of trade for the ASX 200 after a strong night on Wall Street. According to the latest SPI futures, the benchmark index is expected rise 51 points or 0.85% at the open. On Wall Street the Dow Jones rose 0.6%, the S&P 500 jumped 1.25%, and the Nasdaq stormed 1.35% higher. This follows the U.S. Federal Reserve’s decision to keep rates unchanged at close to zero.
Rio Tinto half year results.
The Rio Tinto Limited (ASX: RIO) share price will be on watch following the release of its half year results after the market close. Australia’s largest iron ore producer posted a 6% decline in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to US$9.6 billion and declared a US$1.55 a share interim dividend. According to a note out of Goldman Sachs, it was expecting underlying EBITDA of US$9.1 billion and a US$1.51 per share interim dividend. Also on watch will be Fortescue Metals Group Limited (ASX: FMG). It is due to hand in its quarterly update this morning.
Janus Henderson Q2 update.
The Janus Henderson Group PLC (ASX: JHG) share price could be on the move today following the release of its second quarter update after the market close. Janus Henderson reported assets under management (AUM) of US$336.7 billion at the end of June, which was up 14% compared to the prior quarter. This reflects an improvement in global markets, which was partially offset by net outflows of US$8.2 billion.
Oil prices push higher.
It could be a good day for energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.6% to US$41.29 a barrel and the Brent crude oil price rose 1.3% to US$43.79 a barrel. Traders were buying oil following a sharp drop in U.S. crude inventories.
Gold price storms higher.
Gold miners including Resolute Mining Limited (ASX: RSG) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch after the gold price climbed higher again. According to CNBC, the spot gold price is up 1% to US$1,964.40 an ounce. The precious metal was given a boost when the U.S. Federal Reserve kept rates close to zero.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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.
- Leading broker upgrades Domino’s (ASX:DMP) share price to conviction buy rating – December 1, 2020 8:54am
- Santos (ASX:STO) share price on watch after guidance upgrade – December 1, 2020 8:33am
- These were the worst performing ASX 200 shares in November – December 1, 2020 7:35am