On Wednesday the S&P/ASX 200 index followed the lead of U.S. markets and charged 0.4% higher to 6,595.9 points.
Will the Australian share market be able to build on this on Thursday? Here are five things to watch:
Global selloff to hit ASX 200.
The Australian share market looks set to sink notably lower on Thursday after global stock markets were sold off overnight. Investors hit the sell button after bond yields pointed to an impending recession in the United States. According to the latest SPI futures, the ASX 200 index is expected to open the day 135 points or 2.1% lower this morning. On Wall Street the Dow Jones sank 3%, the S&P 500 index dropped 2.9%, and the Nasdaq tumbled 3%.
Telstra full year result.
Telstra Corporation Ltd (ASX: TLS) is scheduled to release its highly anticipated full year results this morning. According to Goldman Sachs, it has forecast a 3% decline in income to $27.8 billion, which is at the high end of its $26.2 billion to $28.1 billion guidance range. The telco giant is widely expected to cut its final dividend to 8 cents per share.
Oil prices collapse.
The global market selloff has led to oil prices reversing the strong gains they made yesterday. This could put pressure on the shares of Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) today. According to Bloomberg, the WTI crude oil price sank 3.8% to US$54.95 a barrel and the Brent crude oil price dropped 3.7% to US$59.04 a barrel.
Gold price surges higher.
The global market selloff looks set to be good news for the likes of Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM). According to CNBC, the spot gold price jumped 0.9% to US$1,527.30 an ounce after investors fled to safe haven assets.
The Blackmores Limited (ASX: BKL) share price could be on the move on Thursday when it releases its full year results. The market is expecting a weak full year result from the health supplements company due to softening sales in China, so all eyes will be on its guidance for FY 2020. Its shares sank to a 52-week low earlier this week, so expectations certainly aren’t high.
Growing dividend shares.
Telstra may be expected to cut its dividend today, but these dividend shares are tipped to grow theirs. With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Telstra Limited. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019