On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run with a small gain. The benchmark index rose 0.3% to 7,850.7 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market looks set to rise again on Thursday following a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 24 points or 0.3% higher this morning. In the United States, the Dow Jones was up 0.7%, the S&P 500 rose 0.5%, and the Nasdaq edged 0.1% higher.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices pulled back again overnight. According to Bloomberg, the WTI crude oil price is down 1.5% to US$77.18 a barrel and the Brent crude oil price is down 1% to US$79.90 a barrel. This was driven by easing tensions in the Middle East.
Telstra FY 2024 results
Telstra Group Ltd (ASX: TLS) shares will be on watch this morning when the telco giant releases its FY 2024 results. Commenting on its expectations, Goldman Sachs said: "We expect a solid set of FY24 results, within its recently re-iterated guidance ranges, with growth driven by Mobile & InfraCo segments. Overall we forecast: (1) EBITDA +3% to A$8.22bn (guidance A$8.2-8.3bn; VA cons A$8.24bn); (2) EPS -3% to 17.3¢ (VA 17.4¢); (3) Final DPS +6% to 9¢ (VA 8.9¢); and (4) Capex of A$3.67bn (guidance $3.6-7bn)." The broker also expects "TLS to narrow/upgrade its FY25 EBITDA guidance range to A$8.5-8.7bn (from A$8.4-8.7bn)."
Gold price drops
It could be an underwhelming session for ASX 200 gold miners 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$2,485.4 an ounce. This follows a rebound in U.S. consumer prices which has poured water on expectations for a sizeable rate cut from the US Federal Reserve next month.
Sell CBA shares
Commonwealth Bank of Australia (ASX: CBA) shares remain overvalued despite the big four bank beating expectations with its FY 2024 results. According to the note, the broker has retained its sell rating with an improved price target of $94.80. This implies potential downside of almost 30% for investors. Goldman said: "While CBA's volume momentum in housing lending has improved and BDDs charges remain benign, we do not think this justifies the extent of CBA's valuation premium to peers."
