On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 7,501.7 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 fall
The Australian share market may fall on Thursday following a wild night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.35% lower this morning. In late trade in the United States, the Dow Jones is down 0.45%, the S&P 500 has risen 0.3%, and the NASDAQ is up 0.8%. US stocks were deep in the red at one stage.
Edit: The late swing on Wall Street now has SPI futures pointing to a 36 point gain at the open.
US Fed raises rates
The US Federal Reserve has raised its benchmark interest rate by a quarter percentage point and given no indication that it is near to the end of this hiking cycle. This took its interest rate to a target range of 4.5% to 4.75%. While the hike was not unexpected, the market was looking for hints that the cycle could soon be over. US stocks plunged on the news but have now started to rebound.
Oil prices tumble
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices tumbled on Wednesday night. According to Bloomberg, the WTI crude oil price is down 2.8% to US$76.68 a barrel and the Brent crude oil price is down 2.8% to US$83.09 a barrel. This was driven by U.S. government data showing a big build in crude oil, gasoline and distillate inventories.
QBE named as a buy
The QBE Insurance Group Ltd (ASX: QBE) share price could be great value according to Goldman Sachs. This morning the broker has retained its buy rating and $16.67 price target on the insurance giant's shares. This follows the release of a quarterly update from rival Chubb in the United States. It said: "Our US analyst views the result as favourable driven by better-than-expected core underwriting result ex crop and particularly in commercial lines."
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.25% to US$1,940.4 an ounce. The precious metal softened after the US dollar strengthened.
