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.”