On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had another strong session and raced higher. The benchmark index rose 0.8% to 8,606.5 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market looks set for another positive day following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.3% higher this morning. In late trade in the United States, the Dow Jones is up 0.85%, the S&P 500 is up 0.85%, and the Nasdaq is 0.95% higher.
Oil prices rise
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$58.55 a barrel and the Brent crude oil price is up 0.85% to US$63.01 a barrel. Traders were buying oil after it hit a one-month low.
QBE update
All eyes will be on QBE Insurance Group Ltd (ASX: QBE) shares today when the insurance giant releases its third quarter update. Commenting on its expectations, Bell Potter said: "We anticipate a relatively benign quarter. Short bond yields have been stable, but H1 saw strong returns on risk assets. Premium rate increases remain positive but have been slowing (Q2 rates were +0.8% vs pcp) and we will be watching whether these have flattened out or continued to soften. Inflation remains present and this may be storing up problems for the combined ratio (COR), so there will be a focus on whether the company continues to expect a COR of ~92.5%."
Gold price rises
It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price pushed higher. According to CNBC, the gold futures price is up 0.6% to US$4,164.1 an ounce. This was driven by increasing US interest rate cut hopes.
Buy Temple & Webster shares
Bell Potter thinks investors should be buying Temple & Webster Group Ltd (ASX: TPW) shares after they crashed on Wednesday. This morning, the broker has reaffirmed its buy rating with a reduced price target of $19.50. It said: "Our views are unchanged of TPW's ability to outperform over the long term as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, backed by a strong balance sheet (+$150m cash). Trading at ~2x EV/Sales post the ~40% correction in the share price from the recent peak, we see risk-reward heading into the Feb 1H result and continue to see a buying opportunity. Maintain BUY."
