On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and pushed higher. The benchmark index rose 0.55% to 8,966.3 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 tumble
It looks set to be a disappointing session for Australian investors on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 72 points or 0.8% lower this morning. In the United States, the Dow Jones was down 1%, the S&P 500 fell 1.2%, and the Nasdaq tumbled 1.35%.
Hold Accent shares
Accent Group Ltd (ASX: AX1) shares are almost fully valued according to analysts at Bell Potter. This morning, in response to a takeover approach, the broker has retained its hold rating on the footwear retailer's shares with an improved price target of 80 cents (from 60 cents). It said: "We see this as an opportunistic bid at a time when AX1 navigates cyclical low macroeconomic conditions especially in its key lifestyle footwear market (~60% of the group) with the broader category trending flat to negative in Australia and multiple earnings downgrades resulted from weak market conditions & poor performance from non-core businesses."
Oil prices ease
It could be a subdued session for ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices eased further overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$75.96 a barrel and the Brent crude oil price is down 0.1% to US$78.88 a barrel. Traders have been selling oil since the US and Iran agreed to a peace deal.
BHP and Rio Tinto shares on watch
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a poor session on Thursday after their NYSE-listed shares dropped on Wall Street overnight. BHP shares were down almost 2.5% and Rio Tinto shares were down almost 3%. This may have been driven by a pullback in commodity prices, including a 2.1% decline in the copper price.
Gold price sinks
It could be a poor session for ASX 200 gold shares 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 1.8% to US$4,227.3 an ounce. This was despite the US Federal Reserve keeping interest rates on hold overnight. This was the first policy decision under new chair Kevin Warsh.
