The S&P/ASX 200 Index (ASX: XJO) demonstrated resilience on Wednesday, inching up by 0.3% to close at 8,830.4 points. However, Thursday may present a different picture as the Australian share market is expected to open lower, influenced by mixed performances on Wall Street. According to SPI futures, the ASX 200 is anticipated to drop by 14 points, or 0.15%, at the start of trading.
This development follows a night of varied outcomes in the United States, where the Dow Jones fell by 0.5%, while the S&P 500 and Nasdaq managed to climb by 0.3% and slightly, respectively. Here are five key factors that could shape the ASX 200’s performance on Thursday:
ASX 200 Expected to Fall
The anticipated decline in the ASX 200 comes amid a backdrop of global market uncertainty. While some indices in the U.S. showed positive movement, the overall sentiment remains cautious. Analysts suggest that this mixed performance is a reflection of investor hesitance as they await further economic indicators, particularly from the U.S.
Oil Prices Rise
Energy shares on the ASX 200, such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO), could see gains following a significant overnight rise in oil prices. Bloomberg reports a 1.8% increase in both WTI crude oil, reaching US$63.77 a barrel, and Brent crude oil, climbing to US$67.61 a barrel. This surge is attributed to geopolitical tensions after Israel’s recent military action in Doha, Qatar, which has prompted traders to bid oil prices higher.
ASX 200 Shares Go Ex-Dividend
Several ASX 200 companies are scheduled to go ex-dividend today, potentially impacting their stock prices. Notable among these are Breville Group Ltd (ASX: BRG), Nine Entertainment Co Holdings Ltd (ASX: NEC), Perpetual Ltd (ASX: PPT), and SGH Ltd (ASX: SGH). SGH Ltd, for instance, is set to pay a fully franked dividend of 32 cents per share on October 10, which may lead to a temporary dip in its share price as investors adjust for the dividend payout.
Gold Price Eases
Gold shares, including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST), might experience a subdued session. CNBC reports a slight decrease in gold futures, now priced at US$3,681.6 an ounce. Market participants seem to be in a holding pattern, awaiting the release of U.S. inflation data, which could provide clearer direction for the precious metals market.
Buy Nufarm Shares
Amidst these market fluctuations, Nufarm Ltd (ASX: NUF) has emerged as a potential buy for investors. The agricultural chemical company has shown promising growth prospects, supported by strong demand in the agricultural sector. Analysts recommend keeping an eye on Nufarm shares as they could offer attractive returns in the current market environment.
Meanwhile, the broader market sentiment remains cautious as investors navigate through a maze of economic data and geopolitical developments. The ASX 200’s performance on Thursday will likely be shaped by these factors, with market participants closely monitoring any new developments that could influence trading decisions.
As the day unfolds, investors will be keenly observing the interplay between global economic indicators and local market dynamics, striving to make informed decisions in an ever-evolving financial landscape.
