5 things to watch on the ASX 200 on Thursday

It looks set to be another red day for the ASX 200.

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark fell 0.45% to 7,163.3 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 looks set to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% lower this morning. In the United States, the Dow Jones fell 0.2%, the S&P 500 dropped 0.95%, and the NASDAQ sank 1.5%.

US interest rates

Investors were hitting the sell button on Wall Street overnight after the US Federal Reserve held its interest rate meeting. Although the central bank decided against increasing rates, according to CNBC, it still expects one more hike before the end of the year and fewer cuts than previously indicated next year.

Oil prices fall

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$90.27 a barrel and the Brent crude oil price is down 1.2% to US$93.17 a barrel. Traders were selling oil on the belief that higher rates could reduce demand.

Gold price falls

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 0.1% to US$1,951.9 an ounce. The precious metal fell after the US Federal Reserve's interest rate meeting.

Life360 rated as a buy

The Life360 Inc (ASX: 360) share price could be great value according to analysts at Bell Potter. According to a note, the broker has retained its buy rating and lifted its price target on the location technology company's shares to $11.00. It said: " In anticipation of a strong Q3 result – and some chance of an upgrade to 2023 guidance – we have increased the multiple we apply in the EV/Revenue valuation from 3.5x to 3.75x."

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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