On Tuesday the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) pushed 0.5% higher to 6,210.2 points thanks largely to gains in the banking sector.
Will the local market be able to build on this on Wednesday? Here are five things that could shape the day’s trade:
ASX futures pointing lower.
According to the latest SPI futures, the Australian share market is expected to open the day lower on Wednesday by 0.4% or 26 points. This follows a disappointing night of trade on Wall Street which saw the Dow Jones Industrial Average fall 0.5%, the S&P 500 drop 0.5%, and the NASDAQ index slide almost 0.9% lower.
Oil prices have been mixed.
Australian energy shares such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) will be on watch on Wednesday after a positive 24 hours for oil prices. Overnight West Texas Intermediate oil futures broke above the US$75 a barrel mark for the first time since November 2014. But while prices slipped soon after, according to Bloomberg, WTI crude oil is still up 0.3% to US$74.28 a barrel and Brent crude oil is 0.8% higher at US$77.89 a barrel.
Bellamy’s broker note.
Organic infant formula company Bellamy’s Australia Ltd (ASX: BAL) will be one to watch this morning after it was the subject of a broker note out of Goldman Sachs. Although the broker suspects that its CFDA accreditation could be delayed longer than expected, its analysts remain positive on its long-term outlook and have retained their buy rating. Goldman has, however, lowered its price target by 18% to $21.00.
Sirtex acquisition given the all clear.
The Sirtex Medical Limited (ASX: SRX) share price could head higher on Wednesday after the Foreign Investment Review Board gave the thumbs up to CDH Fund and China Grand Pharmaceutical and Healthcare Holdings acquiring the regenerative medicine company for $33.60 per share.
Worleyparsons hit by U.S. tax law changes.
Worleyparsons Limited (ASX: WOR) shares could come under fire today after the mining services company advised that it expects to take an additional charge to its income tax expense of approximately $20 million. This will bring the total charge for FY 2018 to approximately $78.2 million and will be excluded from its underlying earnings.
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