5 things to watch on the ASX 200 on Thursday

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and ended the day in the red. The benchmark index fell 0.15% to 7,816.8 points.

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

Strong session expected for the ASX 200

The Australian share market looks set to rebound strongly on Thursday following a very good night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 72 points or 0.9% higher this morning. In the United States, the Dow Jones was up 1.1%, the S&P 500 rose 1% and the Nasdaq stormed 1.2% higher.

Oil prices charge higher

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$82.39 a barrel and the Brent crude oil price is up 0.8% to US$85.35 a barrel. A decline in US inventories and positive outlook commentary from OPEC boosted prices.

Buy Light & Wonder shares

Goldman Sachs thinks Light & Wonder Inc. (ASX: LNW) shares are great value at current levels. This morning, the broker has initiated coverage on the cross-platform global games company that provides gambling products and services with a buy rating and $190.00 price target. This implies potential upside of 22% for investors over the next 12 months. It said: “LNW is well-placed to continue winning market share in ANZ and North America gaming operations, driving earnings growth of +12% (2-year CAGR) to achieve its FY25 AEBITDA target of US$1.4bn, which we believe has not been factored into market expectations (GSe +3% above VA consensus).”

Gold price rises

It could be a decent session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$2,378.9 an ounce. US interest rate cut optimism boosted the precious metal.

Aristocrat rated neutral

Aristocrat Leisure Limited (ASX: ALL) shares have been given a neutral rating by analysts at Goldman Sachs. The broker is very positive on the gaming technology company but believes its shares don’t have enough upside to initiate with a buy rating. Goldman has put a neutral rating and $55.30 price target on them instead. This implies potential upside of 7% for investors. It said: “We are most positive on the near to mid-term prospects within land-based gaming, expecting ongoing share gains from the big three, but prefer LNW to ALL given a greater risk-reward skew.”

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

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.