On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a day to remember and stormed higher. The benchmark index rose 1.75% to 8,092.3 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 rise
The Australian share market looks set to rise again on Thursday following a very strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.15% higher this morning. In the United States, the Dow Jones was up 0.25%, the S&P 500 rose 1.6% and the Nasdaq raced 2.65% higher. This was driven by the US Federal Reserve confirming its intention to cut interest rates in September.
Oil prices jump
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5% to US$78.40 a barrel and the Brent crude oil price is up 2.7% to US$80.72 a barrel. Middle East tensions were behind the rise.
Sell TPG shares
Goldman Sachs thinks TPG Telecom Ltd (ASX: TPG) shares are overvalued. This morning, the broker has downgraded the telco's shares to a sell rating with a $4.35 price target. It commented: "We downgrade TPG to Sell (from Neutral) as our least preferred ANZ telco, given: (1) less absolute valuation support vs. SPK; (2) a more uncertain earnings outlook, given greater cost inflation; and (3) less balance sheet optionality. TPG does have upside risks, including: (1) potential M&A (i.e. Vocus bid in Aug-23, and Vision Network strategic review since Oct-22); and (2) execution on its transformation program."
Gold price races higher
It could be a great session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price raced higher overnight. According to CNBC, the spot gold price is up 1.7% to US$2,494.4 an ounce. Rate cut hopes gave the precious metal a boost.
Buy Rio Tinto shares
Rio Tinto Ltd (ASX: RIO) shares could be great value. That's the view of analysts at Goldman Sachs, which have responded positively to the mining giant's half year results. According to the note, the broker has retained its buy rating with a slightly trimmed price target of $136.60. Goldman is positive on the company's growth outlook. It said: "RIO has numerous high quality advanced projects that are shovel ready including Resolution copper and Jadar lithium but are awaiting government approvals, brownfields growth such as further expansion of OT, and opportunities to create significant value by turning around underperforming assets such as Bingham Canyon copper and Pacific aluminium."
