On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a day to remember. The benchmark raced 1.65% higher to 7,178.4 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set to open the day lower on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 20 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 is down 0.1%, and the NASDAQ is 0.1% lower.
Rio Tinto named as a buy
Rio Tinto Ltd (ASX: RIO) shares may be close to a 52-week high but Goldman Sachs believes they can keep rising. This morning, the broker responded to its investor day event by retaining its buy rating with a slightly trimmed price target of $137.70. It likes the miner due to its "compelling relative valuation" and "attractive FCF and dividend yield."
Oil prices tumble
It looks set to be a tough session for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 3.9% to US$69.48 a barrel and the Brent crude oil price is down 3.6% to US$74.43 a barrel. Concerns about the economic outlook in China appear to be weighing heavy on crude prices.
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a better session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$2,046.8 an ounce. Gold rose ahead of the release of some key economic data in the US.
Buy Endeavour shares
Goldman Sachs has also retained its buy rating on Endeavour Group Ltd (ASX: EDV) shares with a $6.40 price target. The broker notes that it "walked away from the Hotels Investor Day more positive." Goldman's analysts "forecast FY23-25 EPS CAGR of 2% and FY25-28 EPS CAGR of 9%."
