UPDATE: The Australian share market is bracing for a significant drop today, with the ASX 200 expected to open down 140 points or 1.6% following a sharp selloff in the United States. This slump comes after the benchmark index closed Thursday at 8,753.4 points, marking a 0.5% decline.
The ASX 200’s downward trajectory reflects broader market trends as U.S. stocks plummeted late Thursday. The Dow Jones fell by 1.55%, the S&P 500 dropped 1.7%, and the Nasdaq sank 2.4%. Investors are keenly watching to see if the ASX can rebound before the week concludes.
Oil prices surged overnight, providing a potential boost to ASX energy shares. WTI crude rose 0.45% to US$58.75 per barrel, while Brent crude increased 0.55% to US$63.07. Traders are optimistic that the recent selloff in oil could pave the way for gains in companies like Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR).
In addition, analysts at Bell Potter have issued a Hold rating for Graincorp Ltd (ASX: GNC), citing a reduced price target of $8.50. The report indicates that despite a stable crop yield similar to last year, global grain supply remains high, which may limit marketing returns.
On the contrary, ASX gold shares, including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST), are poised for a challenging day. The gold futures price plummeted 1% to US$4,171.3 an ounce overnight, with market sentiment shifting away from interest rate cuts in the U.S. this December.
In a brighter note, Orica Ltd (ASX: ORI) has received an upgraded Buy rating from Bell Potter, boosted by its FY 2025 results and an improved price target of $26.00. Analysts believe Orica is well-positioned for EBIT growth, driven by favorable market conditions in mining and exploration.
As the market opens, investors are urged to navigate these developing trends carefully. The potential for further declines or recoveries will be closely monitored as trading unfolds. Stay tuned for updates on this evolving situation as the ASX 200 attempts to find its footing amidst turbulent market conditions.
