On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed notably higher. The benchmark index rose 0.7% to 6,167.6 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to edge lower.
The benchmark ASX 200 looks set to end its winning streak on Thursday. According to the latest SPI futures, the benchmark index is poised to open the day 14 points or 0.23% lower. This follows a disappointing night of trade on Wall Street which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.45%, and the Nasdaq tumble 0.6% lower.
Afterpay upgrades guidance.
The Afterpay Ltd (ASX: APT) share price will be on watch on Thursday following a surprise after-market update on its FY 2020 performance. Since the end of the financial year, the company’s collections have been stronger than expected. This led to a better than expected Net Transaction Loss (NTL) as a percentage of underlying sales. In light of this, it has upgraded its EBITDA guidance to approximately $44 million. This compares very favourably to its previous EBITDA guidance of $20 million to $25 million.
Webjet posts major loss.
The Webjet Limited (ASX: WEB) share price will be in focus today after the release of its full year results. The online travel agent posted a 27% decline in revenue to $266.1 million for FY 2020. This comprises first half revenue of $217.8 million and second half revenue of just $48.3 million. On the bottom line, Webjet recorded a statutory net loss after tax of $143.6 million and an underlying net loss after tax of $42.3 million.
Oil prices soften.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 0.15% to US$42.82 a barrel and the Brent crude oil price is down 0.4% to US$45.27 a barrel. Demand concerns were weighing on energy prices overnight.
Gold price sinks.
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could come under pressure today after the gold price sank lower. According to CNBC, the spot gold price is down 4% to US$1,933 an ounce. This follows the release of minutes from the latest U.S. Federal Reserve meeting.
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More reading
- Afterpay share price on watch after upgrading FY 2020 guidance
- ASX 200 rises 0.7%, CSL soars 6.4%
- Webjet share price on watch after reporting $143.6 million loss
- This ASX fund manager is going back to value in a post-COVID world. Here’s why.
- 4 market experts’ opinions as US shares hit record and WiseTech share price soars 33%
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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