5 things to watch on the ASX 200 on Thursday

A strong session is expected for Aussie investors today.

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.5% to 7,715.5 points.

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

ASX 200 expected to jump

The Australian share market looks set to jump on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.7% higher this morning. In the United States, the Dow Jones was down 0.1%, but the S&P 500 rose 0.85% and the Nasdaq jumped 1.5%. The S&P 500 and Nasdaq indices both climbed to new record highs overnight.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 0.85% to US$78.57 a barrel and the Brent crude oil price is up 0.8% to US$82.60 a barrel. Summer fuel demand optimism has given oil a boost this week.

US inflation report

Investors were celebrating on Wall Street overnight after US inflation came in softer than expected. According to CNBC, the consumer price index (CPI) showed no increase in May. This compares to expectations of a 0.1% increase according to economists surveyed by Dow Jones. Following the release of the CPI data, futures traders lifted the chances of the US Federal Reserve cutting interest rates in September. This would be the first move lower since the early days of the pandemic.

Gold price rises

It could be a positive session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 1.2% to US$2,353.9 an ounce. The precious metal rose after the US inflation report sparked hopes that interest rates could fall this year.

WiseTech rated as a hold

The WiseTech Global Ltd (ASX: WTC) share price could be almost fully valued according to analysts at Bell Potter. This morning, the broker has reaffirmed its hold rating on the logistics solutions company's shares with an improved price target of $100.00. This implies just 3.2% upside from current levels. It said that the price target "is a modest premium to the share price so we maintain the HOLD. Potential catalysts for the stock include a beat in the FY24 result – most likely at EBITDA – and strong guidance for FY25 consistent with or ahead of consensus."

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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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