On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.15% to 7,399.4 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set to drop again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% lower this morning. This follows a poor night on Wall Street, which in late trade sees the Dow Jones down 0.25%, the S&P 500 down 0.1%, and the Nasdaq down a few points.
Oil prices edge lower
Energy shares including Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could have a soft day after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$78.36 a barrel and the Brent crude oil price has fallen 0.2% to US$82.16 a barrel. Oil reserve releases are weighing on prices.
Rio Tinto shares named as a buy
The Rio Tinto Limited (ASX: RIO) share price could be great value according to the team at Goldman Sachs. This morning the broker has retained its buy rating and $121.00 price target on the mining giant's shares. It likes Rio Tinto due to its attractive valuation, strong free cash flow, production growth potential, and its exposure to low emission aluminium.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price edged lower. According to CNBC, the spot gold price is down 0.05% to US$1,783.1 an ounce. The gold price slipped amid the release of strong US economic data, which appears to be supporting rate hike bets.
Annual general meetings
There are a number of ASX 200 shares holding their annual general meetings on Thursday. These companies could also provide investors with trading updates at their respective events. Among the shares holding meetings are gold miner Evolution Mining, financial services company IOOF Holdings Limited (ASX: IFL), and struggling ecommerce company Kogan.com Ltd (ASX: KGN).
