On Wednesday, the S&P/ASX 200 Index (ASX: XJO) ran out of steam and dropped into the red. The benchmark fell 0.6% to 7,314.9 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 after a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower this morning. In the United States, the Dow Jones fell 0.3%, the S&P 500 dropped 0.5% and the NASDAQ tumbled 1.2%.
Flight Centre rated neutral
Goldman Sachs feels that Flight Centre Travel Group Ltd (ASX: FLT) shares are about fair value now following yesterday's pullback. This morning, the broker has retained its neutral rating with a $19.40 price target. It said: "Overall, we view FLT's valuation as fully reflective of growth prospects. We do not see any short-term balance sheet risks and view FLT's ability to take advantage of opportunistic M&A as low."
Oil prices rally
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices rallied on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.9% to US$72.56 a barrel and the Brent crude oil price is up 1.6% to US$77.14 a barrel. Grain market tightening boosted prices. Traders believe higher biofuel pricing will lead to stronger oil demand.
Lynas shares rated as buys
Bell Potter believes investors should be buying Lynas Rare Earths Ltd (ASX: LYC) shares. This morning, the broker has retained its buy rating with a trimmed price target of $8.55. The broker notes the company is having "teething issues" in Kalgoorlie. Nevertheless, it remains positive due to Lynas being "a high-quality business, and a key supplier of separated rare earths to Western economies."
Gold price edges lower
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day of trade after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,944.2 an ounce. Comments out of the US Federal Reserve weighed on the safe haven asset.
