5 things to watch on the ASX 200 on Thursday

Here’s what to watch on the ASX 200 on Thursday…

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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index fell 0.7% to 7,327.1 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning. This follows a decent night on Wall Street, which in late trade sees the Dow Jones up 0.15%, the S&P 500 up 0.2%, and the Nasdaq up 0.1%. Overnight the US Federal Reserve said it expects three rates hikes next year.

Oil prices rise

Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.35% to US$70.98 a barrel and the Brent crude oil price is up 0.45% to US$74.03 a barrel. The US Federal Reserve’s statement helped reverse earlier losses caused by Omicron concerns.

CSL shares to return

The CSL Limited (ASX: CSL) share price is due to return to trade today after completing its institutional placement. CSL is raising US$4.5 billion (A$6.3 billion) from institutional investors and a further US$534 million (A$750 million) via a share purchase plan to part fund the acquisition of Vifor Pharma for US$12.3 billion (A$17.2 billion). Management notes that the deal expands CSL’s leadership across an attractive portfolio focused on renal disease and iron deficiency. In response, Citi has upgraded CSL’s shares to a buy rating.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price dropped. According to CNBC, the spot gold price is down 0.5% to US$1,763.30 an ounce. The gold price tumbled following news of the US Fed’s rate hike plans.

Annual general meetings

A number of ASX 200 shares are holding their annual general meetings on Thursday and could provide investors with trading updates. These include banking giant Australia and New Zealand Banking GrpLtd (ASX: ANZ), agribusiness company Elders Ltd (ASX: ELD), and commercial explosives company Orica Ltd (ASX: ORI). In addition, airline operator Qantas Airways Limited (ASX: QAN) is holding an investor update event this morning.

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