5 things to watch on the ASX 200 on Thursday

Here’s what to expect 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 deep into the red. The benchmark index fell 0.95% to 6,700.2 points.

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

ASX 200 expected to edge lower

The Australian share market is expected to edge lower on Thursday following a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. On Wall Street, the Dow Jones was up 0.3%, the S&P 500 fell 0.1%, and the Nasdaq edged 0.05% lower.

Liontown rated as a buy

In response to its agreements with auto giant Ford, Bell Potter has retained its speculative buy rating with a $2.87 price target on the Liontown Resources Limited (ASX: LTR) share price. And while the broker notes that the company has lifted its capital cost estimate for the Kathleen Valley Lithium Project, it feels a 10% increase is an excellent outcome in the current inflationary environment.

Oil prices fall

It could be a tough day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$109.37 a barrel and the Brent crude oil price is down 2.4% to US$115.20 a barrel. This was driven by fears that a recession could lessen demand for oil.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.05% to US$1,820.2 an ounce. Traders appear undecided about which way gold is heading amid both rate hike and recession fears.

Iluka a strong buy

The Iluka Resources Limited (ASX: ILU) share price could be great value according to Goldman Sachs. This morning the broker reiterated its conviction buy rating and $13.80 price target. The broker commented: “We have done a series of calls with key Chinese zircon importers, major producers and experts/price assessors, and now expect a further US$125-180/t increase in ILU’s zircon pricing from 1 July on a tight supply outlook.”

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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