On Wednesday, the S&P/ASX 200 Index (ASX: XJO) fought hard and carved out a small gain. The benchmark index rose 0.2% to 6,621.6 points.
Will the market be able to build on 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 poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points lower this morning. On Wall Street, the Dow Jones was down 0.7%, the S&P 500 fell 0.45%, and the NASDAQ dropped 0.15%.
US inflation hits 40-year high
Investors were selling stocks on Wall Street overnight after US inflation came in hotter than expected. According to CNBC, the consumer price index increased 9.1% from a year ago during the month of June. This was a 40-year high and above the 8.8% Dow Jones estimate. This appears to counter claims that inflation may be peaking.
Oil prices mixed
Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.25% to US$96.09 a barrel and the Brent crude oil price is down 0.05% to US$99.43 a barrel. News of a build-up in US stockpiles was largely offset by the big inflation report.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$1,733.3 an ounce. A softer US dollar boosted the safe haven asset.
Bega Cheese rated as a hold
The Bega Cheese Ltd (ASX: BGA) share price could be fully valued according to analysts at Bell Potter. This morning the broker put a hold rating and $3.80 price target on the dairy company's shares. Bell Potter said: "Given the ongoing dislocation in farmgate pricing and ingredient pricing we have tempered our long-term ROIC target for BGA resulting in our target price falling to $3.80ps (prev $4.20ps)."
