5 things to watch on the ASX 200 on Thursday

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.35% to 8,823 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to jump

It looks set to be a great session for Australian investors on Thursday despite a subdued night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 0.85% higher this morning. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is 0.05% lower, and the Nasdaq is down 0.35%.

Hold Beach Energy shares

Beach Energy Ltd (ASX: BPT) shares are around fair value despite falling heavily this year according to Bell Potter. This morning, the broker has retained its hold rating on the energy producer’s shares with a reduced price target of 95 cents (from $1.15). It said: “BPT is in a production replacement cycle with respect to exploration and appraisal. Production growth should return in FY27 and capex ease, enabling positive free cash flow to support balance sheet deleveraging and ongoing dividends. We are positive on BPT’s exposure to Australian east coast gas markets (around half of sales volumes) and cautious with respect to global oil markets.”

Oil prices rise again

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) could have a good session after oil prices charged higher again overnight. According to Bloomberg, the WTI crude oil price is up 3.3% to US$87.12 a barrel and the Brent crude oil price is up 3.65% to US$94.33 a barrel. Traders were bidding oil higher after the US claimed that Iran is not serious about signing a peace deal.

Buy Paladin Energy shares

Paladin Energy Ltd (ASX: PDN) shares are undervalued according to Bell Potter. In response to its quarterly update and release of FY 2027 guidance, the broker has retained its buy rating on the uranium producer’s shares with a trimmed price target of $14.80 (from $15.30). It commented: “We retain our Buy recommendation. We have a positive medium- to long-term outlook for the uranium market, supported by barriers to new supply and demand growth linked to electrification, energy security and AI-related power requirements. PDN has around ~53% exposure to spot prices out to 2030. Production at LHM continues to improve with higher-grade mined ore feeding the processing plant and continued process optimisation.”

Gold price climbs

It could be a good session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price rose overnight. According to CNBC, the gold futures price is up 1.55% to US$4,139.4 an ounce. Safe haven demand sent the gold price to a two-week high.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• The Santos share price is in the spotlight this week. Here’s why
• Why is everyone talking about Resolute Mining, Westgold and Paladin shares on Wednesday?
• Why this top expert thinks Qantas shares can fly 20% higher
• Beach Energy posts steady Q4 production and a resilient outlook

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.