Aussie investors might be in for a rough session today. Despite the S&P/ASX 200 Index (ASX: XJO) enjoying a strong performance on Wednesday, climbing 0.7% to 8,057.9 points, today's outlook is less optimistic. Here are five key factors to keep an eye on:
1. ASX 200 Expected to Fall
The Australian share market is poised to open lower on Thursday, following a challenging night on Wall Street. Latest SPI futures indicate a drop of 41 points, or 0.5%, for the ASX 200. While the Dow Jones edged up 0.6%, the S&P 500 slipped 1.4%, and the Nasdaq tumbled 2.8%. This mixed performance in the US markets suggests a cautious start for Aussie investors.
2. Oil Prices Charge Higher
Energy shares in the ASX 200, such as Beach Energy (ASX:BPT) Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS), might experience a boost today. Oil prices surged overnight, with WTI crude oil rising 2.6% to US$82.89 a barrel and Brent crude climbing 1.6% to US$85.09 a barrel, driven by a significant drop in US inventories. This positive momentum in the oil market could lift energy stocks.
3. Buy BHP (ASX:BHP) Shares
Goldman Sachs (NYSE:GS) has identified BHP Group Ltd (ASX: BHP) shares as a good buy at current levels. Following BHP's fourth-quarter update, the broker maintained its buy rating and set a price target of $48.40, suggesting a potential upside of over 13%. Goldman Sachs noted that its EBITDA forecasts remain largely unchanged, with a slight increase in FY26 EPS due to minor adjustments in D&A and net interest.
4. Gold Price Eases
ASX 200 gold stocks like Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: ASX:NST) might see subdued trading after the gold price dipped overnight. The spot gold price fell 0.15% to US$2,464.3 an ounce, following profit-taking activities after reaching a record high the previous day. This decline could weigh on gold miners.
5. Fortescue (ASX:FMG) Job Cuts
Fortescue Ltd (ASX: FMG) shares will be closely watched after the company announced significant job cuts. Fortescue is implementing initiatives to simplify its structure, eliminate duplication, and improve cost efficiencies. As part of these efforts, approximately 700 employees from its global operations will be offered redundancies. This move is aimed at ensuring the company remains lean and agile, supporting its goal to become the world's leading green technology, energy, and metals company.
With global market influences and specific sector developments, today promises to be a volatile session for the ASX. Investors should keep a close eye on these key factors as they navigate the trading day.