On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was able to record a small gain despite weakness in the banking sector. The benchmark index rose 0.35% to 7,121.1 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to tumble on Thursday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.75% lower this morning. On Wall Street, the Dow Jones fell 0.8%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 0.7%. This was driven by concerns that rising oil prices could stifle economic growth.
Miners likely to fall
It could be a tough day for the mining sector after BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) saw their US listed shares tumble overnight. Both mining giant’s dropped approximately 2.5% due to the weakening global economic outlook because of rising inflation.
Oil prices storm higher
It could be a good day for energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices continued their ascent overnight. According to Bloomberg, the WTI crude oil price is up 2.6% to US$122.56 a barrel and the Brent crude oil price is up 2.9% to US$124.02 a barrel. Oil jumped to a 13-week high on rising US gasoline demand.
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.15% to US$1,854.70 an ounce. The precious metal rose amid concerns over global growth.
St Barbara acquisition talks
The St Barbara Ltd (ASX: SBM) share price will be one to watch after $380 million Genesis Minerals Ltd (ASX: GMD) confirmed that it had been in acquisition talks with the gold miner. However, these talks have now concluded and St Barbara has yet to make a takeover offer. Genesis is a gold explorer with a project in close proximity to St Barbara’s Leonora operation.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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