On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and stormed higher. The benchmark rose 0.85% to 7,402 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 have a soft session on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower this morning. In the United States, the Dow Jones rose 0.2%, the S&P 500 edged lower, and the NASDAQ was down 0.1%.
US Federal Reserve increases rates
The US Federal Reserve has increased rates by 0.25% to take benchmark borrowing costs to their highest level in over 22 years. The increase brings the fed funds rate to a target range of 5.25%-5.5%. This may spark concerns that the RBA could follow suit next week despite yesterday's inflation reading.
Rio Tinto results
The Rio Tinto Ltd (ASX: RIO) share price will be on watch today following the release of the miner's half-year results. Rio Tinto reported revenue down 10% to US$26.67 billion and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 25% to US$11.73 billion. This result appears to have fallen short of expectations. Elsewhere, rival Fortescue Metals Group Ltd (ASX: FMG) will be releasing its quarterly update this morning.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) may have a subdued session after oil prices fell on Wednesday night. According to Bloomberg, the WTI crude oil price is down 0.9% to US$78.94 a barrel and the Brent crude oil price is down 0.8% to US$82.95 a barrel. Traders were selling oil after the US Federal Reserve lifted rates.
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price rose overnight. According to CNBC, the spot gold price is up 0.6% to US$1,975.1 an ounce. The gold price rose despite the Fed hiking rates. Traders appear to believe this is the final increase by the central bank.
