5 things to watch on the ASX 200 on Thursday

The Australian share market looks set to run out of steam on Thursday and drop into the red.

Broker looking at the share price.

Image source: Getty Images

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher again. The benchmark index rose 0.85% to 8,843.7 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 end its winning streak on Thursday despite a strong 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 the United States, the Dow Jones was up 0.2%, the S&P 500 rose 0.7%, and the Nasdaq stormed 1.2% higher.

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 dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$64.08 a barrel and the Brent crude oil price is down 1.5% to US$66.61 a barrel. Doubts over Russian sanctions appear to have weighed on prices.

Light & Wonder results

Light & Wonder Inc (ASX: LNW) shares will be on watch this morning when the gaming technology company releases its second quarter results. Another strong result is expected from Light & Wonder, with consensus estimates sitting at US$854.15 million for revenue and US$1.40 for earnings per share.

Gold price eases

It could be a subdued session for ASX 200 gold miners Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price eased overnight. According to CNBC, the gold futures price is down slightly to US$3,432.6 an ounce. Traders were taking profit after a strong run in recent sessions.

Buy Perpetual shares

The Perpetual Ltd (ASX: PPT) share price is good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the fund manager's shares with an improved price target of $23.00. A dividend yield of 6.3% is also expected by the broker. It said: "Over the last few years PPT has taken heavy significant charges relating to the acquisition and integration (of Pendal, Barrow Hanley and Trillium), as well as the subsequent Strategic Review, separation program and Simplification Program. With the sale of WM, we anticipate that these charges will start to abate and that UPAT, will converge closer to NPAT and underlying cash generation."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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