AnySelected

After a disappointing Wednesday, the Australian share market is looking for a turnaround. The S&P/ASX 200 (ASX: XJO) closed down 0.8% at 8,561.8 points, marking a concerning dip for investors. But can today, Thursday, bring a much-needed recovery? We've pinpointed five key stocks to keep a close eye on as the market attempts to regain momentum.

Understanding Wednesday's Downturn

Several factors contributed to Wednesday's decline. Global economic uncertainty, persistent inflation concerns, and rising interest rates continue to weigh on investor sentiment. Reports of slowing growth in major economies also played a role, prompting a cautious outlook across the board. Domestically, some sectors faced specific headwinds, impacting the overall index performance.

5 Stocks to Watch on Thursday

1. BHP Group (ASX: BHP): As a major player in the resources sector, BHP's performance is often seen as a bellwether for the Australian economy. Investors will be closely watching commodity prices and any updates on production targets. Any positive news from the iron ore or copper markets could provide a boost.
2. Commonwealth Bank (ASX: CBA): Australia's largest bank is always a key focus. Interest rate decisions and economic forecasts will heavily influence CBA's stock price. Keep an eye out for any commentary on consumer spending and mortgage trends.
3. Woodside Energy Group (ASX: WDS): With energy prices remaining volatile, Woodside's performance is crucial. Geopolitical factors and global demand for LNG will be key drivers. Positive developments in the energy sector often lift the broader market.
4. Afterpay (ASX: APT): Despite recent challenges, Afterpay remains a significant fintech company. Any news regarding strategic partnerships, regulatory changes, or growth in user numbers will be closely scrutinised. The market will be looking for signs of stability and future potential.
5. Fortescue Metals Group (ASX: FMG): Like BHP, Fortescue's fortunes are tied to the iron ore market. Supply chain issues and demand from China will be key factors to monitor. Any positive signals from China regarding infrastructure spending could benefit FMG.

What to Expect from the ASX 200 Today

The market is likely to be sensitive to overnight developments in global markets. Any positive news from the US or Europe could provide a lift, while further negative data could exacerbate the downward trend. Keep an eye on economic data releases, particularly those related to inflation and unemployment. Ultimately, today's performance will depend on whether investors regain confidence and are willing to take on risk.

Disclaimer

This is not financial advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions.