5 things to watch on the ASX on Wednesday

The shares of Beach Energy Ltd (ASX:BPT), Santos Ltd (ASX:STO), OZ Minerals Limited (ASX:OZL), and TPG Telecom Ltd (ASX:TPM) will be on watch on Wednesday…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) dropped lower for the third day in a row following heavy declines on international markets. The benchmark index finished the day down 0.2% at 6,197.6 points.

Will the local market be able to bounce back strongly on Wednesday? Here are five things that could shape the day ahead.

ASX futures are pointing lower.

According to the latest SPI futures, the Australian share market is expected to open the day lower by 0.2% or 12 points. This is despite a positive night of trade on Wall Street that saw the Dow Jones Industrial Average rise 0.2%, the S&P 500 climb 0.4%, and the NASDAQ push 0.5% higher.

Oil prices surge higher.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could rebound strongly from yesterday's declines after oil prices surged higher again. According to Bloomberg, the WTI crude oil price rose 3.4% to US$70.38 a barrel and the Brent crude oil climbed 2.1% to US$76.28 a barrel. Oil prices jumped after the U.S. State Department said it will require companies to cut all oil imports from Iran to zero within the next five months.

Base metals on the decline.

Global trade war tensions have led to further declines for many base metals overnight in London. The benchmark copper price closed the day 0.6% lower at US$6,713 a tonne, having traded close to a three-month low at one stage. Aluminium and zinc prices were also in the red. Because of this, Rio Tinto Limited (ASX: RIO) and OZ Minerals Limited (ASX: OZL) shares could come under pressure today.

TPG Telecom rated as a sell.

The shares of TPG Telecom Ltd (ASX: TPM) have been tipped as a sell by analysts at Goldman Sachs. According to the note, Goldman thinks that TPG Telecom is facing competitive pressures across each of the markets it operates in (Mobile, Fixed, and Enterprise). It has placed a $4.70 price target on its shares.

Market update released by McMillan Shakespeare.

The shares of McMillan Shakespeare Limited (ASX: MMS) will be on watch on Wednesday after the salary packaging company released a market update after the ASX closed on Tuesday. That update revealed the exit from its Money Now point of sale motor vehicle consumer finance business, a further asset impairment of $18 million to $24 million after tax in relation to the continuing Retail Financial Services business, and confirmation that FY 2018 underlying net profit after tax is expected to be $93.6 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended TPG Telecom Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »