ASX 200 Outlook: Futures Predict Slight Dip, Xero Results and Oil Prices in Focus
Analysts note a modestly lower opening for the ASX 200, while investors await Xero's half-year earnings and energy stocks may benefit from rising oil prices.
The S&P/ASX 200 index closed Wednesday up 0.25% at 9,153.2 points, but futures suggest a quieter session on Thursday, with the benchmark projected to open about 34 points, or 0.35%, lower. U.S. markets ended the previous day higher, with the Dow up 0.50%, the S&P 500 up 1.35% and the Nasdaq up 1.70%.
Shares of Xero Ltd are set to draw attention after the cloud accounting firm releases its half-year results. Investors will assess whether artificial-intelligence initiatives are boosting user growth and average revenue per user, and whether the company will keep its full-year operating revenue guidance of NZ$3.62-3.73 billion, a 31%-35% increase over FY 2026.
Energy stocks such as Woodside Energy Group and Santos could see gains after Bloomberg reported a rise in WTI crude to US$86.32 a barrel and Brent crude to US$92.46 a barrel, driven by waning expectations of an Iran-U.S. de-escalation.
"We continue to see the stock as materially undervalued given its valuation, albeit with higher near-term volatility. In our view, the set-up into FY27 remains attractive, supported by installed base growth, Gaming content rollout and ongoing deleveraging. We maintain our Buy recommendation, with a target price of A$165 (previously A$174)."
Analysts at Morgans reiterated a buy rating for Light & Wonder Inc., trimming the price target to A$165.
Gold prices also slipped, adding to the mixed backdrop for Thursday's trading.