5 things to watch on the ASX 200 on Thursday

Here's what to expect on the local market today.

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a volatile day and ultimately ended it slightly lower. The benchmark index fell 0.1% to 8,933.9 points.

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

ASX 200 to edge lower

The Australian share market looks set to edge lower on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade in the United States, the Dow Jones and the S&P 500 are flat, and the Nasdaq is up 0.3%.

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 rose overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$63.22 a barrel and the Brent crude oil price is up 1.25% to US$68.42 a barrel. This was driven by comments from Donald Trump that a "massive Armada is heading to Iran."

Boss Energy shares downgraded

Boss Energy Ltd (ASX: BOE) shares are fully valued according to analysts at Bell Potter. This morning, the broker has downgraded this uranium producer's shares to a hold rating with a $1.95 price target. It said: "We maintain our TP of $1.95/sh and reduce our recommendation to Hold (previously Buy). Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.6Mlbs pa and costs remain elevated, until such a time that management have completed the work to guide otherwise. We have ascribed nil value to BOE's exploration assets at this point. NPAT changes are: FY26 +5%, FY27 -2% and FY28 nc."

Gold price jumps

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a very good session on Thursday after the gold price jumped overnight. According to CNBC, the gold futures price is up 4% to US$5,287 an ounce. This followed news that the US Federal Reserve kept interest rates unchanged, as was widely expected.

Mineral Resources update

Mineral Resources Ltd (ASX: MIN) shares will be on watch today when the mining and mining services company releases its quarterly update. All eyes will be on the profitability of its lithium operations following a rebound in prices. For the same reason, Liontown Ltd (ASX: LTR) shares will be watched carefully when it releases its highly anticipated quarterly update.

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 no position in any of the stocks mentioned. 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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