On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell 0.6% to 7,298.5 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. This follows a subdued night of trade on Wall Street, which saw the Dow Jones fall 0.2%, the S&P 500 drop 0.1%, and the Nasdaq rise 0.1%.
Woolworths spins off Endeavour Group
The Woolworths Group Ltd (ASX: WOW) share price will be one to watch closely on Thursday. This morning the retail giant will spin off its drinks business. This will see Endeavour Group Limited (ASX: EDV) join the ASX 200 index. Woolworths' shareholders will receive one Endeavour Group share for every Woolworths share they hold. The Woolworths share price is likely to decline in order to reflect the spinoff.
Oil prices rise
Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.6% to US$73.27 a barrel and the Brent crude oil price has risen 0.7% to US$75.33 a barrel. Oil prices climbed to two-year highs after US supply tightened.
Gold price softens
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could underperform today after the gold price softened overnight. According to CNBC, the spot gold price is down 0.1% to US$1,775.70 an ounce. While rate hike concerns were eased by the US Fed yesterday, it wasn't enough to lift the price of the precious metal.
South32 given conviction buy rating
The South32 Ltd (ASX: S32) share price could be undervalued according to analysts at Goldman Sachs. This morning the broker reiterated its conviction buy rating and lifted its price target to $3.80. This compares to the current South32 share price of $2.87. It explained: "We increase our FY21-23 EPS estimates by 1%/11%/20% and NAV by 19% to A$3.86/sh to reflect changes to the GS commodities team's aluminium price forecasts, and raise our 12-month TP 12% to A$3.8/sh."
