5 things to watch on the ASX 200 on Thursday

The ASX 200 looks set to have a red day on Thursday…

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard to end its losing streak and record a small gain. The benchmark index rose 0.2% to 7,064.7 points.

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

ASX 200 expected to sink

The Australian share market looks set to resume its decline on Thursday after higher than expected inflation in the United States spooked Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.8% lower this morning. On Wall Street, the Dow Jones fell 1%, the S&P 500 dropped 1.65%, and the Nasdaq sank 3.2%.

Xero full-year results

The Xero Limited (ASX: XRO) share price will be one to watch on Thursday. This morning the cloud accounting platform provider is scheduled to release its full-year results. According to a note out of Goldman Sachs, it is expecting Xero to report revenue of NZ$1,108 million. This comprises ANZ revenue of NZ$650 million and international revenue of NZ$458 million. The broker has also pencilled in an EBITDA margin of 19.6% and EBITDA of NZ$218 million.

Oil prices surge

It could be a very good day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 5.4% to US$105.14 a barrel and the Brent crude oil price is up 4.5% to US$107.07 a barrel. Oil prices rose after Russian gas flows to Europe declined.

CBA’s Q3 update

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today when the banking giant releases its third-quarter update. According to a note out of Citi, its analysts expect CBA to deliver a better than expected cash profit. It said: “Our 3Q cash earnings estimate is ~3% ahead of consensus driven by better BDDs (77% lower). Compared to 1H22 quarterly average, we expect 3Q cash earnings to be ~10% lower. Pre-provision profit is expected to be in-line with consensus with slightly higher NIMs and improved OOI, offset by higher costs.”

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 overnight. According to CNBC, the spot gold price is up 0.65% to US$1,852.90 an ounce. Inflation concerns and a softer US dollar gave the precious metal a boost.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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