5 things to watch on the ASX 200 on Wednesday

It looks set to be a difficult day for the ASX 200…
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) started the shortened week in a very poor fashion. The benchmark index sank 2.1% to 7,318 points.

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

ASX 200 expected to sink again

The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.

Oil prices rebound

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 3.2% to US$101.63 a barrel and the Brent crude oil price has risen 2.7% to US$105.04 a barrel. Supply fears appear to have boosted prices.

South32 shares remain a buy

The South32 Ltd (ASX: S32) share price tumbled on Tuesday following the release of its quarterly update. The team at Goldman Sachs appear to see this as a buying opportunity. This morning the broker has retained its conviction buy rating with a trimmed price target of $5.70. While acknowledging that South32 has increased its cost guidance, overall Goldman was pleased with the company’s performance during the quarter.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.55% to US$1,906.5 an ounce. Economic growth fears and inflation concerns have supported the safe haven asset.

Mineral Resources tipped as a buy

The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Bell Potter. This morning the broker has retained its buy rating and $70.00 price target on the mining and mining services company’s shares. In response to its US$1 billion notes offering, the broker believes it is “further confirmation of MIN’s commitment to the transformational portfolio of growth projects.”

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

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

*Returns as of January 12th 2022

More reading

Are these 2 ASX tech shares top ideas for May 2022?

Own ASX 200 energy shares? Here’s why Morgan Stanley says the oil price is set to surge

Why Chalice Mining, EML Payments, Mineral Resources, and South32 shares are tumbling

Here are the 3 most heavily traded ASX 200 shares on Tuesday

Is the Zip share price set to sink below the $1 mark for the first time since 2018?

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.

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.

  • This field is for validation purposes and should be left unchanged.

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 - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!