Following a challenging session on Thursday, when the S&P/ASX 200 Index (ASX: XJO) fell by 1.3% to 7,861.2 points, Australian investors are anticipating a potentially better performance today. Here are five key factors to monitor as the market opens for trading:
ASX 200 Anticipated to Rise
Despite mixed performance on Wall Street, the Australian share market is projected to open on a more positive note. Current SPI futures suggest the ASX 200 could rise by 24 points, or 0.3%, at the start of trading. Wall Street experienced varied results with the Dow Jones increasing by 0.2%, while the S&P 500 and Nasdaq declined by 0.5% and 0.9%, respectively.
Oil Prices on the Rise
Energy sector stocks within the ASX 200, such as Beach Energy Ltd (ASX: ASX:BPT) and Karoon Energy Ltd (ASX: KAR), might see an improved performance due to a rise in oil prices. Bloomberg reports that the WTI crude oil price has increased by 0.7% to $78.13 per barrel, and Brent crude oil is up 0.65% to $82.25 per barrel. This upward movement follows stronger-than-expected economic growth for the second quarter.
Mineral Resources Quarterly Update
Mineral Resources Ltd (ASX: MIN) will be in focus today as it releases its quarterly update. The company is expected to report iron ore shipments of 4.6 million tonnes and spodumene shipments of 358,000 tonnes for the fourth quarter. Realized prices are anticipated to be $95 per tonne for iron ore and $886 per tonne for spodumene.
Decline in Gold Prices
Gold-related stocks within the ASX 200, including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: ASX:NST), may face headwinds following a decline in gold prices. CNBC indicates that the spot gold price has dropped by 2.3% to $2,360.7 per ounce, reaching a two-week low as traders took profits.
Fortescue (ASX:FMG) Shares Under Pressure
Fortescue Ltd (ASX: FMG) saw its shares drop significantly on Thursday after releasing its quarterly update. The company’s shares may continue to face downward pressure, with some analysts noting a potential further decline. The current Fortescue share price stands at $20.14, which is perceived as trading at a premium compared to other major iron ore producers.
Investors should keep these factors in mind as they navigate today’s trading environment. The potential for a recovery in the ASX 200, combined with movements in key sectors such as energy, minerals, and gold, will be critical in shaping the market’s direction.