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5 things to watch on the ASX 200 on Wednesday

Here’s what to 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. –

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index ended the day 0.5% higher at 7,431.4 points.

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

ASX 200 futures pointing lower

The Australian share market is poised give back some of its gains on Wednesday. This follows a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% lower this morning. On Wall Street, the Dow Jones fell 0.25%, the S&P 500 dropped 0.5%, and the Nasdaq tumbled 1.2%.

Virgin Money UK Q3 update

The Virgin Money UK CDI (ASX: VUK) share price could push higher today following the after-hours release of its third quarter update. The UK bank reported a 0.7% increase in mortgages to 58.7 billion pounds and a 2.5% lift in personal lending to 5.2 billion pounds. Another positive was a small increase in its net interest margin to 168bps. Virgin Money shares on the London Stock Exchange rose 2% overnight, compared to a 0.4% decline by the FTSE.

Oil prices mixed

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.2% to US$71.79 a barrel and the Brent crude oil price is up 0.1% to US$74.58 a barrel. Undersupply forecasts were offset by COVID concerns.

Oil Search given buy rating

The Oil Search Ltd (ASX: OSH) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker put a buy rating and $5.15 price target on the energy producer’s shares following its second quarter update. Goldman said: “OSH retains the highest oil-beta in the sector and the strong oil price outlook helps to reduce balance sheet concerns, where we expect FCF yield of ~15%, which may be a further driver of corporate appeal.”

Gold price flat

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price traded flat. According to CNBC, the spot gold price is fetching US$1,799.7 an ounce. Traders are awaiting comments from the US Federal Reserve when it emerges from its two-day meeting on Wednesday.

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

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More reading

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ASX 200 midday update: BlueScope & OZ Minerals updates impress

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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