On Wednesday the S&P/ASX 200 Index (ASX: XJO) was back on form and managed to record a small gain. The benchmark index rose 0.1% to 6,057.7 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to crash lower.
The Australian share market looks set to crash notably lower this morning following a terrible night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 82 points or 1.35% lower. In late trade in the United States, the Dow Jones is down 2.9%. the S&P 500 has dropped 3%, and the Nasdaq is also down 3%. COVID-19 and U.S. stimulus concerns are weighing heavily on investor sentiment.
ANZ full year results.
The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be on watch when it releases its full year results this morning. A note out of Goldman Sachs reveals that it expects the bank’s second half cash earnings (from continued operations and pre-one offs) to be down 19.1% to $2,351 million. The broker has also pencilled in a final partially franked dividend of 38 cents per share. Goldman reduced its estimates earlier this week to reflect ANZ’s remediation update.
Oil prices sink to three-week low
COVID-19 concerns have sent oil prices down to a three-week low, which could be bad news for the likes of Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) on Thursday. According to Bloomberg, the WTI crude oil price is down 5.3% to US$37.49 a barrel and the Brent crude oil price is down 4.8% to US$39.24 a barrel.
Link takeover update.
The Link Administration Holdings Ltd (ASX: LNK) share price will be one to watch this morning after the release of an update on its takeover approach. The Link board advised that it does not believe the updated proposal ($5.40 per share) represents compelling value for shareholders. It feels further work is required to determine the viability and attractiveness of the separation of the PEXA and Link (ex PEXA) assets. However, it has granted the consortium due diligence.
Gold price drops lower.
Much to the dismay of gold miners such as Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR), not even a market selloff on Wall Street could support the safe haven asset overnight. According to CNBC, the spot gold price has sunk 1.8% lower to US$1,878.0 an ounce after the U.S. dollar strengthened amid the market volatility.
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More reading
- Link (ASX:LNK) share price on watch on Thursday following takeover update
- Hayne Commission continues to haunt the Big Four banks
- Today was mixed for the ASX 200, ending 0.1% higher
- These could be the next ASX stocks to unlock value by selling assets
- After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy?
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. 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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