5 things to watch on the ASX 200 on Thursday

Here’s what to expect on the ASX 200 on Thursday…

| More on:
Investor sitting in front of multiple screens watching share prices

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Share Market News

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the ASX 200 on Tuesday...

Read more »

Young woman using computer laptop smiling in love showing heart symbol and shape with hands. as she switches from a big telco to Aussie Broadband which is capturing more market share
Share Market News

Here are the top 10 ASX 200 shares today

These ASX 200 stocks outperformed all their peers on Monday.

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Monday

One of our most-traded ASX 200 shares has dropped 12 % today.

Read more »

a man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

Will the next era of computing break the Bitcoin price or boost it?

Cryptos have taken a beating over the past months as interest rates around the world ratcheted higher. But is there…

Read more »

A man sitting at his dining table looks at his laptop and ponders the CSL balance sheet and the value of CSL shares today
Bank Shares

Is the CBA share price overvalued compared to other ASX 200 banks?

CommBank is the most exposed to any downturn in the Aussie housing market.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
Real Estate Shares

GPT share price lifts despite 30% profit plunge

Here's how GPT Group is shaking off a poor headline figure to move higher today...

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares...

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Share Market News

Did you know you’re investing in lithium when you buy Wesfarmers shares?

Lithium is part of Wesfarmers’ future.

Read more »