On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a tough session and sank deep into the red. The benchmark dropped 0.95% to 7,197.4 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to have another tough session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% lower this morning. In the United States, the Dow Jones tumbled 0.7%, the S&P 500 dropped 0.6% and the NASDAQ fell 0.35%.
US Federal Reserve raises interest rates
The US Federal Reserve has completed its monetary policy meeting and has decided to increase interest rates by 0.25%. This is the 10th increase since March 2022, taking the central bank's benchmark borrowing rate to a target range of 5%-5.25%. Looking ahead, while the Fed hasn't ruled out further hikes, it looks set to hit pause for the time being.
Oil prices continue to fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another tough session after oil prices continued to fall on Wednesday night. According to Bloomberg, the WTI crude oil price is down 4.5% to US$68.32 a barrel and the Brent crude oil price is down 4.3% to US$72.08 a barrel. Demand concerns continue to weigh heavily on oil prices.
NAB half-year results
The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when the banking giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings (before one-offs) growth of 21.5% to $4,227 million. This is ahead of the consensus estimate of $4,151 million. Goldman also expects an interim dividend of 84 cents per share.
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 edged higher overnight. According to CNBC, the spot gold price is up 0.4% to US$2,031.7 an ounce. Traders were buying gold amid hopes the US Fed will pause its rate hikes.
