On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.6% to 8,756.4 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 edge higher on Thursday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning. In the United States, the Dow Jones was down 0.4%, the S&P 500 fell 0.1%, and the Nasdaq pushed 0.15% higher.
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 pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$70.37 a barrel and the Brent crude oil price is up 1.5% to US$73.63 a barrel. Optimism over Russian sanctions boosted prices.
Rio Tinto results
Rio Tinto Ltd (ASX: RIO) shares will be on watch this morning after the mining giant released its half year results. Due to weakness in the iron ore segment, the mining giant reported a small increase in consolidated sales revenue to US$26.87 billion but a 16% drop in underlying earnings to US$4.8 billion. This led to the miner cutting its interim dividend by 16% to US$1.48 per share. Its NYSE listed shares tumbled 4.5% overnight.
Gold price sinks
It could be a tough session for ASX 200 gold miners Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price sank overnight. According to CNBC, the gold futures price is down 1.75% to US$3,323 an ounce. Traders were selling the precious metal after the US Federal Reserve defied expectations and kept interest rates on hold.
Buy Pilbara Minerals shares
The Pilbara Minerals Ltd (ASX: PLS) share price is good value according to analysts at Bell Potter. This morning, in response to the lithium miner's quarterly update, the broker has retained its buy rating and $2.00 price target on its shares. It said: "PLS operates a low-cost asset in a tier one jurisdiction, is diversifying through the lithium value chain, and provides a clean exposure to global lithium fundamentals and sentiment. While we expect lithium prices to remain volatile, we hold a robust EV-demand driven long-term market outlook and believe higher prices are required to incentivise new sources of supply."
