On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped lower. The benchmark index fell 0.15% to 7,423.9 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to fall again
The Australian share market looks set to fall on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% lower this morning. This follows a poor night on Wall Street, which in late trade sees the Dow Jones down 0.55%, the S&P 500 down 0.75%, and the Nasdaq down 1.6%. The highest US inflation reading in 30 years appears to have spooked investors and caused a spike in bond yields.
Oil prices sink
Energy shares including Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.9% to US$81.72 a barrel and the Brent crude oil price has fallen 2.2% to US$82.91 a barrel. Traders were selling oil after U.S. crude inventories rose by 1 million barrels in the most recent week.
Xero's half year results
The Xero Limited (ASX: XRO) share price will be one to watch on Thursday when it releases its half year results. According to a note out of Goldman Sachs, it is expecting the cloud accounting platform provider to deliver revenue growth of 33% in FY 2022. Its analysts will therefore be looking for a first half growth rate that positions the company to achieve this.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 1% to US$1,848.2 an ounce. Traders were buying gold despite the higher than expected US inflation reading and rising bond yields.
AGMs being held
A number of ASX 200 companies are holding their annual general meetings today and could provide updates on their performances. Among the companies holding their meetings are BHP Group Ltd (ASX: BHP) (after market), Breville Group Ltd (ASX: BRG), Nearmap Ltd (ASX: NEA), and Nine Entertainment Co Holdings Ltd (ASX: NEC).
