5 things to watch on the ASX 200 on Wednesday

Santos Ltd (ASX:STO) and Treasury Wine Estates Ltd (ASX:TWE) shares will be on watch on the ASX 200 on Wednesday…
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia. –

Investor sitting in front of multiple screens watching share prices

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was a very poor performer and sank lower. The benchmark index fell 1.05% to 7,097 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall

It looks set to be another difficult day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.55% lower this morning. This follows a poor night of trade on Wall Street which saw the Dow Jones fall 1.35%, the S&P 500 fall 0.9% and the Nasdaq drop 0.1%. The latter was down as much as 3.5% at one stage before rebounding.

Federal Budget

The Federal Government has just unveiled its “recovery budget” which includes billions of dollars of new funding. Among the biggest winners from the budget will be the aged care sector, which gets a $17.7 billion funding boost, and low to middle income earners. The latter will see up to 10 million Australians receive another tax offset of up to $1,080 in their refunds. This could be a boost to consumer spending.

Oil prices rise

It could be a good day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.8% to US$65.43 a barrel and the Brent crude oil price has climbed 0.5% to US$68.68 a barrel. Oil prices rose amid fears of fuel shortages in the United States.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up slightly to US$1,838.30 an ounce. Increased demand for safe haven assets was partially offset by rising bond yields.  

Treasury Wine rated as neutral

The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to analysts at Goldman Sachs. According to a note, ahead of the wine company’s investor day event, the broker has retained its neutral rating and $9.30 price target. It notes that Nielsen data in the US continues to be supportive from a market share perspective. However, the market is now cycling the pandemic driven consumption levels and is subsequently experiencing double digit sales declines in retail.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!