On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back its early gains and dropped lower due to weakness in the banking and resources sectors. The benchmark index fell 0.85% to 6,714.1 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
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ASX 200 to bounce back
The Australian share market looks set to bounce back on Thursday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 39 points or 0.6% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.6%, the S&P 500 has risen 0.85%, and the Nasdaq is up 0.15%. Bond yields fell overnight after weak US inflation data.
Iron ore price stabilises
A sharp pullback in the iron ore price weighed very heavily on Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) shares on Wednesday. Fortunately, the steel-making ingredient has now stabilised and even edged higher during overnight trade. Traders had been selling iron ore after Chinese authorities curbed steel production to tackle pollution.
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a solid day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.85% to US$64.55 a barrel and the Brent crude oil price has risen 0.8% to US$68.05 a barrel.
Gold price higher
Gold miners Newcrest Mining Ltd (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,723.80 an ounce. The gold price climbed after bond yields pulled back following soft inflation data.
Shares going ex-dividend
Another group of shares will be going ex-dividend this morning and could trade lower. On this occasion these shares include copper producer OZ Minerals Limited (ASX: OZL) and diversified mining company South32 Ltd (ASX: S32).
