On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 8,178.3 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to rise on Thursday following a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% higher this morning. In the United States, the Dow Jones was up 0.7%, the S&P 500 rose 0.4%, and the Nasdaq pushed 0.25% higher.
Oil prices drop
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$57.90 a barrel and the Brent crude oil price is down 2% to US$60.91 a barrel. Traders were selling oil after the US Federal Reserve warned of economic uncertainty.
ANZ half year results
The ANZ Group Holdings Ltd (ASX: ANZ) share price will be one to watch on Thursday when the banking giant releases its half year results. According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts are expecting the big four bank to report total operating income of $11,265 million and a cash profit of $3,596 million. This is expected to underpin an interim dividend of 83 cents per share.
Gold price falls
It could be a poor session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.35% to US$3,376.6 an ounce. This was driven by the US Federal Reserve keeping interest rates steady.
Zip shares rated as a buy
Zip Co Ltd (ASX: ZIP) shares are undervalued according to analysts at Goldman Sachs. This morning, the broker has initiated coverage on the buy now pay later provider's shares with a buy rating and $2.50 price target. This implies potential upside of almost 40% for investors. Goldman said: "We expect a more favourable economic outlook and continued ZIP outperformance in the US BNPL space would drive a multiple re-rate for ZIP given the compression that has been experienced in the last 6 months on economic outlook concerns, in our view."
