On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 8,462.6 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to rise on Thursday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 point or 0.1% higher this morning. In the United States, the Dow Jones is up 0.6%, the S&P 500 is up 0.5%, and the Nasdaq is 1.15% higher.
Buy Worley shares
The team at Goldman Sachs thinks that Worley Ltd (ASX: WOR) shares could be destined to generate big returns. This morning, the broker has reaffirmed its buy rating and $18.00 price target on the engineering services company's shares. It said: "WOR's share price has declined ~21% over the last 12m, now trading at a consensus (FactSet) NTM PE of 14.3x (GSe 13.8x) vs a 10yr average of 16.2x. This equates to a 23% discount to the ASX 200 vs a 10yr average premium of 1%."
Oil prices fall
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$68.60 a barrel and the Brent crude oil price is down 1.7% to US$72.36 a barrel. Traders were selling oil ahead of the announcement of a decision on supply from OPEC+.
Gold price edges higher
It could be a reasonably positive session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.35% to US$2,677.3 an ounce. Soft US economic data boosted the precious metal.
Rio Tinto update
Rio Tinto Ltd (ASX: RIO) shares will be on watch today after the mining giant released an update on its production plans. Rio Tinto's chief executive, Jakob Stausholm, said: "We have all the building blocks we need to become a global leader in energy transition materials, and we have a clear plan for a decade of profitable growth." This includes targeting annual production of 1 million tonnes of copper by the end of the decade underpinned by an increase in output from Oyu Tolgoi in Mongolia.
