On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its winning streak with a solid gain. The benchmark index rose 0.6% to 6,999.3 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 1.5%, the S&P 500 has fallen 1.5% and the NASDAQ has tumbled 1.9%.
Oil prices sink
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices sank on Wednesday night. According to Bloomberg, the WTI crude oil price is down 3.1% to US$86.18 a barrel and the Brent crude oil price is down 2.5% to US$92.99 a barrel. An increase in US crude stockpiles and Chinese demand concerns weighed on prices.
Xero half year results
The Xero Limited (ASX: XRO) share price will be on watch today when the cloud accounting platform company releases its half year results. A note out of Goldman Sachs reveals that its analysts are expecting "Revenue/GP/EBITDA +28/+30/+42% vs. PcP to NZ$648/571/143mn; driven by continued ANZ net add strength, positive ARPU tailwinds from price rises and continued platform performance offset by UK go-to-market weakness."
NAB rated as a buy
The National Australia Bank Ltd (ASX: NAB) share price remains good value following the bank's full year results according to Goldman Sachs. This morning the broker retained its buy rating with an improved $35.41 price target. Goldman believes that NAB provides "the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term."
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,707.6 an ounce. The gold price fell after the US dollar strengthened.
