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5 things to watch on the ASX on Wednesday

On Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) bounced back from its heavy decline on Monday with a 0.6% push higher to 6,265.8 points.

Will the market be able to build on this on Wednesday? Here are five things that could shape the day’s trade:

ASX expected to open higher.

According to the latest SPI futures, the Australian share market is expected to open the day higher by almost 0.3% or 16 points on Wednesday. This follows a positive night of trade on Wall Street which saw the Dow Jones surge 0.8% higher, the S&P 500 rise 0.5%, and the Nasdaq remain flat. Solid gains from the majority of the FAANG stocks helped lift the U.S. market.

Oil prices push higher.

Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shares could move higher today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price surged 1.3% higher to US$68.76 a barrel and the Brent crude oil price rose over 0.9% to US$73.75 a barrel. Oil prices rose on news that U.S. crude and fuel stocks had dropped.

CPI data due to be released.

Later today the Australian Bureau of Statistics will release its second quarter CPI reading. The consensus estimate is for a 0.5% lift quarter-on-quarter and a 2.2% rise year-on-year. This isn’t expected make any difference to the Reserve Bank’s outlook on rates.

BHP and Rio Tinto will be on watch.

The shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could be set for a strong day of trade after their US-listed shares stormed higher overnight. The BHP Billiton share price climbed 5% and the Rio Tinto share price rose 4%.

Redbubble rated as a buy.

The Redbubble Ltd (ASX: RBL) share price was given a boost overnight after being the subject of a positive broker note out of Goldman Sachs. Following its strong update yesterday, the broker has retained its buy rating and placed a $1.85 price target on the e-commerce company’s shares. This price target implies potential upside of almost 22%.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of REDBUBBLE FPO. 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.

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