5 things to watch on the ASX 200 on Thursday

Here's what to look out for on the local market today.

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and ended the day slightly lower. The benchmark index fell 0.15% to 8,585.2 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is down 0.95%, and the Nasdaq is 1.5% lower.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$55.97 a barrel and the Brent crude oil price is up 1.25% to US$59.65 a barrel. This follows news that Donald Trump has ordered a Venezuelan oil tanker blockade.

Boss Energy update

Boss Energy Ltd (ASX: BOE) shares will be on watch on Thursday when the uranium producer returns from its trading halt. On Wednesday, it requested the halt while it prepared an announcement regarding the conclusion and outcomes of the Honeymoon Review. Short sellers have been loading up on Boss Energy's shares on the belief that this review could fall well short of the market's expectations.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Thursday after the gold price pushed higher. According to CNBC, the gold futures price is up 0.9% to US$4,373.3 an ounce. Soft US labour market data boosted rate cut chances.

Buy DroneShield shares

Bell Potter thinks that investors should be buying DroneShield Ltd (ASX: DRO) shares ahead of a potentially big year in 2026. This morning, the broker has reiterated its buy rating with a trimmed price target of $4.40. It said: "We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on RF detect and defeat solutions. Consequently, we believe DRO should see material contracts flowing from its $2.5b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e."

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 DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. 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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