On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and slipped into the red. The benchmark index fell 0.1% to 7,963.7 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to sink on Thursday following a very poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 0.95% lower this morning. In the United States, the Dow Jones was down 1.25%, the S&P 500 fell 2.3% and the Nasdaq sank 3.6%. This was driven by a tech selloff after a disappointing set of results from some big names.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.7% to US$77.49 a barrel and the Brent crude oil price is up 0.6% to US$81.51 a barrel. Crude oil prices rebounded following a drop in US inventories.
Sell Pilbara Minerals shares
Goldman Sachs thinks Pilbara Minerals Ltd (ASX: PLS) shares are overvalued. In response to the lithium giant's quarterly update, the broker has reiterated its sell rating and cut its price target to $2.40 (from $2.60). It said: "On FY25 guidance, production was in line (800-840kt @ 5.2%), though unit costs were well above GSe/consensus at A$650-700/t (@5.2%; FOB; pre-royalties), including some one-off expansion costs (improving in FY26). However, including stripping and sustaining capex we estimate guidance implies a cash cost of ~US$690/t (@6%), and an AISC of ~US$800/t (including royalties/shipping; @ 6%), leaving limited cash margins of <US$100/t (pre-tax) in FY25 before growth spend."
Gold price eases
It could be a subdued session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.3% to US$2,400.8 an ounce. Not even this safe haven asset was able to avoid the selloff.
Fortescue Q4 update
Fortescue Ltd (ASX: FMG) shares will be on watch today when the mining giant releases its fourth quarter update. According to a note out of Goldman Sachs, its analysts are forecasting iron ore shipments of 51.9Mt for the three months ended 30 June. This represents a 20% increase quarter on quarter. This is slightly ahead of the consensus estimate for iron ore shipments of 51.6Mt.
