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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 index returned to form with a solid gain. The benchmark index ended the day 0.5% higher at 6,484.8 points.

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

ASX futures pointing lower.

The Australian share market is expected to drop lower on Wednesday. According to the latest SPI futures, the ASX 200 index is poised to open the day 44 points or 0.7% lower this morning following a disappointing start to the week on Wall Street following Monday’s Memorial Day holiday. The Dow Jones fell 0.9%, the S&P 500 dropped 0.85%, and the Nasdaq fell 0.4% due to recession concerns.

Oil prices mixed.

Australian energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch today after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price rose 0.55% to US$58.95 a barrel and the Brent crude oil price edged 0.2% lower to US$70.00 a barrel. U.S. oil prices rose following flooding in the midwest.

Aristocrat Leisure trades ex-dividend.

The Aristocrat Leisure Limited (ASX: ALL) share price is likely to trade lower on Wednesday after going ex-dividend for its 22 cents per share fully franked interim dividend. This dividend will now be paid to eligible shareholders on July 2.

Gold price lower.

Australian gold miners such as Northern Star Resources Ltd (ASX: NST) and Resolute Mining Limited (ASX: RSG) could come under pressure on Wednesday after the gold price dropped lower despite the share market weakness. According to CNBC, the spot gold price dropped 0.35% to US$1,279.10 an ounce.

Coles rated as a buy.

The Coles Group Ltd (ASX: COL) share price could be on the move today after a note out of Goldman Sachs revealed that its analysts have retained their buy rating and $13.30 price target. According to the note, Goldman says “Coles has been delivering to its strategy script from June 2018 while also compensating for its under-investment since its demerger from WES in November 2018. We believe that Coles is poised for greater profitability from its online strategy and supply chain investments and is also undervalued in relation to its closest peers.”

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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 and has recommended COLESGROUP DEF SET. 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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