On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run with the smallest of gains. The benchmark index rose a fraction to 8,142.1 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to fall
It looks set to be a poor session for Aussie investors on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 45 points or 0.55% lower this morning. In the United States, the Dow Jones was down 0.25%, the S&P 500 fell 0.3%, and the Nasdaq dropped 0.3%.
US Federal Reserve's super cut
The US Federal Reserve surprised Wall Street overnight with a 50 basis points rate cut. This brings its target range down to 4.75% to 5%. According to CNBC, Federal Reserve Chair Jerome Powell described the rate cut as a "recalibration" of central bank policy, noting that the central bank will continue to make decisions meeting by meeting. Though, anyone hoping for a return to super cheap money from ultra-low interest rates may be left disappointed. Powell said: "My own sense is that we are not going back to that."
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$69.99 a barrel and the Brent crude oil price is down 1.2% to US$72.81 a barrel. Analysts believe that the oil market had already priced in a rate cut, so today's news was unable to offset slowing demand in China.
Gold price drops
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.7% to US$2,574.7 an ounce. The gold price hit a record high before pulling back, potentially due to profit taking.
South32 goes ex-dividend
South32 Ltd (ASX: S32) shares are going ex-dividend on Thursday and could trade lower. Last month, the mining giant released its full year results and declared a final dividend of 3.1 US cents per share. This is the equivalent of 4.6 Australian cents per share. This will be paid to eligible shareholders next month on 17 October. NRW Holdings Limited (ASX: NWH) shares are also going ex-dividend today.
