On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had another subdued session and edged into the red. The benchmark dropped 0.1% to 7,255.7 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 a subdued session on Thursday despite the reasonably 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% lower this morning. In the United States, the Dow Jones was down 0.1%, but the S&P 500 rose 0.45% and the NASDAQ jumped 1%. A lower than expected US inflation reading boosted stocks.
Allkem to merge with Livent
The Allkem Ltd (ASX: AKE) share price will be on watch today after the miner announced plans to merge with lithium giant Livent. Allkem, which was formed through the merger of Galaxy Resources and Orocobre, will combine with Livent in an all-stock merger of equals creating a US$10.6 billion (A$15.7 billion) lithium monster. The release suggests that the agreement values Allkem shares at $13.54 per share. However, recent share price movements could mean a much higher valuation.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices fell on Wednesday night. According to Bloomberg, the WTI crude oil price is down 1.2% to US$72.83 a barrel and the Brent crude oil price is down 1% to US$76.67 a barrel. A surprise increase in U.S. inventories weighed on prices.
Westpac shares go ex-dividend
The Westpac Banking Corp (ASX: WBC) share price is likely to trade lower on Thursday. That's because the banking giant's shares are going ex-dividend this morning for its fully franked interim dividend of 70 cents per share. Eligible shareholders can look forward to receiving this dividend towards the end of next month on 27 June.
Gold price edges lower
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a soft session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.3% to US$2,036.4 an ounce. Gold fell despite the release of US inflation data boosting Fed rate-hike pause bets.
