On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a better session and edged higher. The benchmark index rose 0.1% to 8,216 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to tumble on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.3% lower this morning. In late trade in the United States, the Dow Jones is down 1%, the S&P 500 is down 1%, and the Nasdaq is 1.8% lower.
Fortescue Q1 update
Fortescue Ltd (ASX: FMG) shares will be on watch today when the mining giant releases its first quarter update. The market is expecting Fortescue to report weaker iron ore shipments for the three months ended 30 September. Goldman Sachs is forecasting iron ore shipments of 47.6Mt for the period. This will be down 11% on the previous quarter and is a touch short of the consensus estimate of 47.8Mt. The market expects this to be achieved with an average realised price of US$97 per tonne and C1 unit costs of US$19.20 per tonne.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) look set to have a subdued session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.4% to US$70.76 a barrel and the Brent crude oil price is down 1.4% to US$74.99 a barrel. This was driven by news of higher than expected US stockpiles.
Gold price drops
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a disappointing session after the gold price pulled back overnight. According to CNBC, the gold futures price is down 1.1% to US$2,728.3 an ounce. This was driven by a stronger US dollar and higher bond yields.
Buy Boss Energy shares
The Boss Energy Ltd (ASX: BOE) share price could be undervalued according to the team at Bell Potter. This morning, the broker has reaffirmed its buy rating and $5.70 price target on the ASX 200 uranium stock. Based on its current share price, this implies potential upside of almost 60% for investors over the next 12 months. The broker said: "Uranium fundamentals continue to support our thesis."
