On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank deep into the red. The benchmark index fell 1.9% to 7,950.5 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 sink again
It looks set to be another difficult session for Aussie investors on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 124 points or 1.5% lower this morning. In the United States, the Dow Jones was up 0.1%, the S&P 500 fell 0.15%, and the Nasdaq dropped 0.3%.
Oil prices fall again
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another tough session after oil prices tumbled again overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$68.89 a barrel and the Brent crude oil price is down 1.8% to US$72.40 a barrel. Traders have been selling down oil prices amid concerns that supplies will rise as demand falters.
Woodside goes ex-dividend
It isn't just falling oil prices that are going to weigh on Woodside Energy Group Ltd (ASX: WDS) shares on Thursday. The energy giant is also likely to trade lower after its shares go ex-dividend this morning for its interim dividend. Last month, the company declared a 69 US cents (approximately A$1.02) per share fully franked dividend. This will be paid to eligible shareholders at the start of next month on 3 October.
Gold price edges higher
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.05% to US$2,524.2 an ounce. Market volatility appears to have led to an increase in demand for the safe haven asset.
Sandfire shares rated neutral
Sandfire Resources Ltd (ASX: SFR) shares are fairly valued according to analysts at Goldman Sachs. In response to its FY 2024 results, the broker has reaffirmed its neutral rating with a reduced price target of $8.20. It said: "Trading at ~1x NAV (A$8.27/sh) based on our above consensus long run copper price of ~US$4.4/lb (real $) (nominal ~US$5.2/lb), and on ~5.5x NTM EBITDA, broadly in-line with major diversified miners but below global copper companies. SFR is discounting a long run copper price of ~US$4.5/lb (real) on our assumptions."
