On Wednesday the S&P/ASX 200 index followed the lead of U.S. markets and raced 1.1% higher to 6,648.1 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX expected to edge higher.
The Australian share market looks set to continue its positive run on Thursday. According to the latest SPI futures, the ASX 200 index is poised to open the day 5 points or 0.1% higher this morning. This follows a positive night of trade on Wall Street which saw the Dow Jones edge 0.15% higher, the S&P 500 rise 0.3%, and the Nasdaq climb 0.4%.
U.S. Federal Reserve holds rates steady.
Overnight the U.S. Federal Reserve held rates steady. The FOMC voted 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5%, but opened the door to a rate cut in the near future. The central bank conceded that "uncertainties about this outlook have increased."
Oil prices higher.
It could be a positive day for Beach Energy Ltd (ASX: BPT), Oil Search Limited (ASX: OSH), and the rest of the Australian energy sector after oil prices continued to rise. According to Bloomberg, the WTI crude oil price climbed 0.5% to US$54.18 a barrel and the Brent crude oil price rose 0.1% to US$62.26 a barrel.
Gold price higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could charge higher this morning after the spot gold price raced higher following the FOMC meeting. According to CNBC, the spot gold price climbed 1% to US$1,364.10 an ounce.
Rio Tinto guidance.
The Rio Tinto Limited (ASX: RIO) share price could come under pressure on Thursday after the mining giant reduced its iron ore shipment guidance from the Pilbara by ~4%. Management now expects to ship between 320 million tonnes and 330 million tonnes of iron ore from the region, down from between 333 million tonnes and 343 million tonnes. Rio Tinto's UK-listed shares sank 4.5% lower overnight.
