5 things to watch on the ASX 200 on Thursday

It could be another tough session for Aussie investors today.

Focused man entrepreneur with glasses working, looking at laptop screen thinking about something intently while sitting in the office.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session after inflation came in hotter than expected. The benchmark index sank 1.3% to 7,665.6 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for another tough session on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.65% lower this morning. In the United States, the Dow Jones was down 1.1%, the S&P 500 fell 0.75% and the Nasdaq tumbled 0.6%.

Oil prices fall

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$79.01 a barrel and the Brent crude oil price is down 1.1% to US$83.30 a barrel. This decline was driven by concerns over US gasoline demand.

BHP's Anglo American takeover is off

The BHP Group Ltd (ASX: BHP) share price will be on watch after Anglo American (LSE: AAL) refused to grant the miner an extension for its $75 billion takeover approach. In response to the news, BHP revealed that it "will not be making a firm offer for Anglo American." BHP CEO, Mike Henry, commented: "While we believed that our proposal for Anglo American was a compelling opportunity to effectively grow the pie of value for both sets of shareholders, we were unable to reach agreement with Anglo American on our specific views in respect of South African regulatory risk and cost and, despite seeking to engage constructively and numerous requests, we were not able to access from Anglo American key information required to formulate measures to address the excess risk they perceive."

Gold price drops

It looks set to be a poor session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.9% to US$2,335.5 an ounce. The precious metal came under pressure after the US dollar and treasury yields strengthened.

Buy Qantas shares

Qantas Airways Limited (ASX: QAN) shares could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating and $8.05 price target on the airline operator's shares. It said: "The discounted valuation versus peers and its own history implies that the market is pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks), which we view as a buying opportunity."

Motley Fool contributor James Mickleboro has positions in Woodside Energy 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.

More on Share Market News

A woman screams and holds her hands up in frustration.
Share Market News

Why is short interest in Sayona Mining shares growing?

Why won't short sellers leave this lithium miner alone?

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Bank Shares

CBA shares hit another new high! Too late to buy?

At today's new record price, CBA's market capitalisation is just $1 billion short of the ASX 200's most valuable stock,…

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Broker Notes

Why these 3 ASX 200 shares just gained significant broker upgrades

The brokers just boosted their outlooks for these ASX 200 shares. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Energy Shares

Paladin Energy shares sink on $1.25b uranium acquisition news

Investors haven't responded positively to the news.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Buy this ASX 200 stock for 'stability and growth potential'

One analyst has good things to say about this stock.

Read more »

Coles Woolworths supermarket warA man and a woman line up to race through a supermaket, indicating rivalry between the mangorsupermarket shares
Opinions

Can Coles shares outperform the ASX 200 Index from here?

Can Coles shares outperform the ASX 200 Index? Here's why I think so.

Read more »

A female executive smiles as she carries out business on her mobile phone.
Broker Notes

Buy Telstra shares due to its 'excessive' discount

This telco giant's shares could be unnecessarily cheap according to Bell Potter.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A better day is expected for Aussie investors today. Here's what's happening.

Read more »