5 things to watch on the ASX 200 on Thursday

It could be a very good day for the ASX 200 on Thursday…

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its slide with another sizeable decline. The benchmark index fell 1.3% to 6,601 points.

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

ASX 200 expected to finally rebound

The Australian share market is expected to rebound on Thursday following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% higher this morning. On Wall Street, the Dow Jones rose 1%, the S&P 500 climbed 1.45%, and the Nasdaq jumped 2.5%. Futures contracts are pointing to further gains on Wall Street tonight.

US Federal Reserve lifts rates

As was widely expected, the US Federal Reserve has lifted rates by 0.75%. This is the biggest increase the central bank has made in almost 30 years. The Fed also stressed that it would stay tough on inflation. Looking ahead, according to CNBC, the “dot plot” of individual members’ expectations indicates that the Fed’s benchmark rate will end the year at 3.4%. This is up 1.5 percentage points from the March estimate.

Oil prices tumble

It could be a bad day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 2.6% to US$115.85 a barrel and the Brent crude oil price is down 2% to US$118.80 a barrel. Oil prices tumbled amid concerns that rising interest rates would impact demand.

Gold price pushes higher

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 1.3% to US$1,836.70 an ounce. The precious metal rose despite the US Federal Reserve raising rates and thus lessening the allure of the safe haven asset.

Coronado Global added to the ASX 200

The Coronado Global Resources Inc (ASX: CRN) share price could be given a lift today from news that the coal miner has been added to the ASX 200 index. It has been added to the benchmark index as a replacement for Crown Resorts Ltd (ASX: CWN). The casino and resorts operator’s shares are being delisted following Blackstone’s takeover.

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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