On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and slipped into the red. The benchmark index was down slightly to 7,758.9 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to end the shortened week in the red on Thursday following a tough 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% lower this morning. In the United States, the Dow Jones was down 1.7%, the S&P 500 fell 2.2%, and the Nasdaq tumbled 3.1%.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.2% to US$62.70 a barrel and the Brent crude oil price is up 2.1% to US$66.04 a barrel. This was driven by news of sanctions on Chinese importers of Iranian oil.
Buy Rio Tinto shares
The team at Goldman Sachs thinks that investors should be buying Rio Tinto Ltd (ASX: RIO) shares following its first quarter update. This morning, the broker has reaffirmed its buy rating with a slightly trimmed price target of $140.80. It said: "We continue to rate RIO a Buy based on: 1. Relative valuation: trading at ~0.65x NAV (A$169/sh) vs. peers (BHP ~0.7x NAV and FMG ~1x NAV) and ~5.2x NTM EBITDA at GSe base case, below the historical average of ~6-7x."
Gold price surges
It could be a great session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price surged higher overnight. According to CNBC, the gold futures price is up 3.5% to US$3,353.3 an ounce. The gold price stormed higher amid increased demand for safe havens.
BHP update
All eyes will be on BHP Group Ltd (ASX: BHP) shares this morning when the mining giant releases its eagerly anticipated third quarter update. Goldman Sachs is expecting the Big Australian to report copper production of 488kt (consensus 491kt), iron ore shipments of 67.8Mt (consensus 68Mt), and met coal production of 3.8Mt (consensus 4.4Mt).
