On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed higher. The benchmark index rose 0.9% to 7,015.6 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. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% lower this morning. In late trade in the United States, the Dow Jones is down 0.5%, the S&P 500 has fallen 0.3% and the NASDAQ is down 0.1%. The US share market dropped following the US Federal Reserve's announcement on interest rates.
US Federal Reserve raises interest rates
Despite concerns that rising interest rates are causing a banking crisis, the US Federal Reserve elected to increase rates again overnight. The central bank has taken interest rates 0.25% higher to a target range between 4.75% and 5%. Positively, the Fed has hinted that the rate hike cycle could be nearing an end.
Oil prices push higher
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session after oil prices rose on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.35% to US$70.63 a barrel and the Brent crude oil price is up 1.5% to US$76.47 a barrel. Oil prices rose in response to comments by the Fed.
Brickworks and Soul Patts to report
Brickworks Limited (ASX: BKW) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) will be releasing their half-year results this morning. In respect to the former, at its annual general meeting in November, Brickworks suggested that it expects to deliver a solid half-year result. However, it warned of increasing headwinds in the second half for its Building Products business.
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price rose overnight. According to CNBC, the spot gold price is up 1.3% to US$1,966.5 an ounce. Gold rose in response to the Federal Reserve's rate hike. Traders may believe it could cause more banking sector issues.
