On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a good day and stormed notably higher. The benchmark index rose 1.1% to 7,175.2 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market is poised to rise again on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 1% higher this morning. In late trade on Wall Street, the Dow Jones is up 1%, the S&P 500 is up 1.6%, and the Nasdaq has jumped 2.9%.
US Fed raises rates
The US Federal Reserve has elected to increase interest rates for the first time in more than three years. The central bank revealed that it made its 0.25% increase in an effort to address rising inflation without stunting economic growth. This brings the rate into a range of 0.25%-0.5%. But it won't stop there. According to CNBC, the Fed intends to lift rates at each of the six remaining meetings this year.
Oil prices fall
It could be a subdued day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$95.40 a barrel and the Brent crude oil price is down 1.6% to US$98.31 a barrel. Russian-Ukraine optimism and the release of US inventory data weighed on prices.
Westpac shares rated as a hold
Westpac Banking Corp (ASX: WBC) shares are a hold according to the team at Bell Potter. According to a note, the broker has retained its hold rating but lifted its price target on Australia's oldest bank to $25.00. The broker notes that Westpac has appointed a Chief Transformation Officer, Yianna Papanikolaou. However, its analysts said: "it remains to be seen if this is a wise move in de-risking the bank's overall change and investment thesis – and especially if cutting costs purely to $8.0bn in FY24e is the only thing that matters to date."
Gold price drops
It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped again. According to CNBC, the spot gold price is down 0.4% to US$1,921.8 an ounce. The precious metal came under pressure after the Fed increased rates.
