On Tuesday the S&P/ASX 200 index continued its positive run and pushed a further 0.3% higher to 6,845.1 points.
Will the local market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to slide.
The S&P/ASX 200 index looks set to end its positive run on Wednesday after trade war concerns returned. According to the latest SPI futures, the ASX 200 index is poised to open the day 28 points or 0.4% lower this morning. This follows a disappointing night of trade on Wall Street which saw the Dow Jones drop 0.1%, the S&P 500 index fall 0.25%, and the Nasdaq tumble 0.25%.
Oil prices charge higher.
It looks set to be a very positive day of trade for Australian energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices charged higher. According to Bloomberg, the WTI crude oil price rose 2.6% to US$58.34 a barrel and the Brent crude oil price climbed 2.1% to US$65.05 a barrel. Prices rose in anticipation of a Fed rate cut and another meaningful inventory drawdown this week.
Janus Henderson result.
The Janus Henderson Group PLC (ASX: JHG) share price will be on watch on Wednesday when the fund manager releases its second quarter update. Janus Henderson’s shares have thoroughly underperformed this year following a weak start to the financial year. Investors will be hoping that the company’s second quarter performance has improved greatly.
Gold price storms higher.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could charge higher today after the gold price rose strongly overnight. According to CNBC, the spot gold price climbed 0.75% to US$1,431.30 an ounce ahead of the highly anticipated U.S. Federal Reserve meeting.
The CYBG PLC (ASX: CYB) share price looks set to crash lower this morning following a bitterly disappointing update from the UK-based bank. CYBG’s London-listed shares fell almost 10% after it advised that a large volume of mortgages have been paid off by customers during the third quarter, negatively impacting its lending income.
Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
- These ASX shares are targeting enormous growth over the 2020s – January 24, 2021 10:34am
- 2 blue chip ASX dividend shares to buy next week – January 24, 2021 10:15am
- Top brokers name 3 ASX shares to buy next week – January 24, 2021 10:00am