Here’s what to expect on the market today…
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 again and pushed higher. The benchmark index rose 0.4% to 7,534.9 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to end its winning streak on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% lower this morning. This follows a subdued night of trade on Wall Street, which saw the Dow Jones fall 0.1%, the S&P 500 drop 0.1%, and the Nasdaq edge 0.05% lower.
PointsBet shares rated as a buy
The PointsBet Holdings Ltd (ASX: PBH) share price could be in the buy zone according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating but trimmed its price target slightly to $14.75 following the release of its full year results. Goldman believes PointsBet is well-placed to achieve a 10% share in the US states it operates in.
Oil prices fall
It could be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices softened. According to Bloomberg, the WTI crude oil price is down 1% to US$68.50 a barrel and the Brent crude oil price is down 0.6% to US$72.96 a barrel. Oil prices fell after the US urged OPEC to pump more oil.
Shares going ex-dividend
A number of ASX 200 shares are going ex-dividend today and could trade lower this morning. This includes dairy company Bega Cheese Ltd (ASX: BGA), drinks business Endeavour Group Ltd (ASX: EDV), financial technology company IRESS Ltd (ASX: IRE), wine giant Treasury Wine Estates Ltd (ASX: TWE), and conglomerate Wesfarmers Ltd (ASX: WES).
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a decent day on Wednesday after the gold price edged higher. According to CNBC, the spot gold price is up 0.3% to US$1,817.3 an ounce. A weaker US dollar supported the precious metal’s gain.
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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. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited and Wesfarmers Limited. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.