On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and tumbled deep into the red. The benchmark index sank a disappointing 1.3% to 7,782.5 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
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ASX 200 expected to rebound
The Australian share market looks set for a better session on Thursday following an improved night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.3% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, but the S&P 500 has risen 0.15% and the Nasdaq is 0.2% higher.
Oil prices rise again
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent session after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.4% to US$85.47 a barrel and the Brent crude oil price is up 0.5% to US$89.38 a barrel. Rising geopolitical tensions have given oil prices a lift.
Dividend payday
Today is another big day for dividends with a number of ASX 200 shares distributing their latest payouts to their lucky shareholders. Among the companies that are paying dividends today are financial services company AMP Ltd (ASX: AMP), diversified food company Bega Cheese Ltd (ASX: BGA), mining giant South32 Ltd (ASX: S32), and energy behemoth Woodside. The latter is paying out a fully franked final dividend of 91.7 cents per share this morning.
Gold price jumps
It looks set to be a very good session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.5% to US$2,315.3 an ounce. The precious metal climbed to a new record high after demand for safe haven assets increased due to geopolitical risks.
Buy BHP shares
The BHP Group Ltd (ASX: BHP) share price is good value according to analysts at Goldman Sachs. This morning, the broker has retained its buy rating and $49.20 price target on the mining giant's shares. Goldman named four reasons why it rates BHP as a buy. It said: "(1) Attractive valuation, but at a premium to RIO; (2) GS bullish copper and met coal; (3) Optionality with the +US$20bn copper pipeline and strong production growth over 24/25; (4) Robust FCF, but still below RIO."
