On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher following a softer than expected inflation reading. The benchmark index rose 0.4% to 7,284.2 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to continue its winning streak on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher this morning. In late trade in the United States, the Dow Jones is up 0.7%, the S&P 500 is up 1.5%, and the NASDAQ has risen 2.5%. Wall Street rebounded strongly from a shaky start after the US Fed suggested that smaller rate hikes could start this month.
Oil prices storm higher
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices charged higher on Wednesday night. According to Bloomberg, the WTI crude oil price is up 3% to US$80.55 a barrel and the Brent crude oil price is up 2.8% to US$85.38 a barrel. Tighter supply conditions boosted prices.
BHP and Rio Tinto rise on Wall Street
Mining giant's BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) could have positive sessions on Thursday after rising on Wall Street overnight. In late trade in the United States, Australia's largest miners are up 2.7% and 1% on the NYSE.
Shares going ex-dividend
A couple of ASX 200 shares are due to go ex-dividend this morning and could trade lower on Thursday. Fund manager Pendal Group Ltd (ASX: PDL) is trading ex-dividend for its 3.5 cents per share dividend and enterprise software company TechnologyOne Ltd (ASX: TNE) is trading ex-dividend for its 10.8 cents per share dividend. Both dividends will be paid in approximately two weeks.
Gold price higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.6% to US$1,774.2 an ounce. Gold is set for a 7% monthly rise, which would be its best month in two years. The prospect of interest rates increasing at a slower rate gave the precious metal a major lift in November.
