On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer despite news that inflation has climbed again. The benchmark index rose 0.2% to 6,823.2 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to storm higher
The Australian share market is expected to storm higher on Thursday following a stellar night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.8% higher this morning. On Wall Street, the Dow Jones was up 1.4%, the S&P 500 rose 2.6%, and the NASDAQ stormed a massive 4.1% higher.
Rio Tinto half-year result falls short of expectations
The Rio Tinto Limited (ASX: RIO) share price could come under pressure today after the mining giant's half-year results fell short of consensus estimates. Rio Tinto reported a 10% decline in revenue to US$29,775 million and a 26% reduction in underlying EBITDA to US$15,597 million. This compares to the market consensus estimate of US$30,785 million and US$16,813 million, respectively. The miner's interim dividend was also well short of expectations at US$2.76 per share.
Oil prices jump
Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after a strong night of trade for oil prices. According to Bloomberg, the WTI crude oil price is up 3.4% to US$98.20 a barrel and the Brent crude oil price is up 2.9% to US$107.43 a barrel. Oil prices jumped after Russia cut its gas supply.
US Fed raises rates
As was widely expected, the US Federal Reserve has lifted interest rates again. The central bank elected to increase rates by 0.75% for the second meeting in a row. This took the benchmark overnight borrowing rate up to a range of 2.25% to 2.5%. The big news, though, was that the Fed has hinted that it could slow the pace of its hiking campaign. This sent US equities hurtling higher.
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. According to CNBC, the spot gold price is up 0.9% to US$1,733.5 an ounce. News that the Fed could slow its future rate hikes boosted the precious metal.
