5 things to watch on the ASX 200 on Thursday

Here's what to expect on the ASX 200 today.

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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:

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%."

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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