5 things to watch on the ASX 200 on Thursday

Afterpay Ltd (ASX:APT) and Megaport Ltd (ASX:MP1) shares will be on watch on the ASX 200 on Thursday…

On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher. The benchmark index rose 0.4% to 6,770.4 points.

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

Investor sitting in front of multiple screens watching share prices

Image source: Getty Images

ASX 200 expected to rise again

The ASX 200 looks set to continue its winning streak on Thursday. According to the latest SPI futures, the index is poised to open the day 27 points or 0.4% higher. This follows a very positive night of trade on Wall Street, which late on sees the Dow Jones up 0.7%, the S&P 500 up 1.3%, and the Nasdaq index up 1.9%.

Tech shares on watch

It could be a good day of trade for Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) after their US counterparts stormed higher overnight. One of the strongest performers was the Netflix share price which rocketed higher after reporting strong subscriber growth and buyback plans. This helped drive the tech-focused Nasdaq index to a new record high.

Oil prices edge higher

Energy producers including Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch after oil prices edged higher. According to Bloomberg, the WTI crude oil price is up 0.4% to US$53.19 a barrel and the Brent crude oil price has climbed 0.2% to US$56.01 a barrel. U.S. stimulus hopes gave oil prices a boost.

Gold price jumps

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) could be on the rise today after the gold price jumped higher. According to CNBC, the spot gold price is up 1.5% to US$1,867.60 an ounce. This was driven by reports that President Joe Biden's nominee to head the Treasury Department, Janet Yellen, will recommend further pandemic-related stimulus.

Megaport upgraded to buy rating

The Megaport Ltd (ASX: MP1) share price will be on watch today after being the subject of a bullish broker note. According to a note out of Goldman Sachs, it has upgraded the company's shares to a buy rating with a $15.00 price target. It commented: "Strong demand for public cloud infrastructure, broadening of its product suite and increased confidence on its path to generating positive free cash flow sees us upgrade our recommendation to Buy."

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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