On Wednesday, the S&P/ASX 200 Index (ASX: XJO) bounced back from a soft start to storm to a record high. The benchmark index rose 1.1% to 7,680.7 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 sink
The Australian share market looks set to sink on Thursday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 41 points or 0.55% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 has fallen 0.9%, and the Nasdaq is 1.4% lower. This follows the US Federal Reserve's meeting and comments that it's not ready to cut rates.
Oil prices tumble
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 2.4% to US$75.93 a barrel and the Brent crude oil price is down 1.4% to US$81.73 a barrel. This follows news that the US Federal Reserve isn't in a rush to cut rates.
A2 Milk rated as a hold
A2 Milk Company Ltd (ASX: A2M) shares could be close to fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating with a boosted price target of $5.15. This implies 6% upside from current levels. Bell Potter said: "On balance trends appear slightly more positive through 1H24TD. We have some lingering hesitation given the ongoing dispute with IMF supplier (and SAMR holder) SM1 and the expanded scope of arbitration."
Gold price rises
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a decent day of trade after the gold price rose overnight. According to CNBC, the spot gold price is up 0.55% to US$2,062.1 an ounce. Gold rose despite the US Fed ruling out rate cuts in the near future.
Buy Life360 shares
Goldman Sachs thinks investors should be buying Life360 Inc (ASX: 360) shares. It notes that "Life360's valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation)." Goldman has reiterated its buy rating and $10.50 price target on its shares.
