On Tuesday the S&P/ASX 200 index fought back from a weak start to finish the day with a solid 0.3% gain to 6,695.3 points.
Will the local share market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge higher.
The Australian share market looks set to continue its positive run today after Wall Street pushed higher overnight. According to the latest SPI futures, the ASX 200 index is expected to open the day 8 points or 0.1% higher this morning. In the United States the Dow Jones climbed 0.1%, the S&P 500 pushed 0.25% higher, and the Nasdaq rose 0.4%.
Oil prices tumble.
Oil producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) are likely to come under pressure today after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price sank 6.6% to US$58.75 a barrel and the Brent crude oil price dropped 7.5% to US$63.86 a barrel. Oil prices tumbled lower after Saudi Arabia revealed that its oil production would return to normal by the end of the month.
U.S. Fed meeting.
The Australian share market looks set to trade in a holding pattern today as global markets await the FOMC decision tonight. The U.S. central bank is widely expected cut interests when it concludes a two-day policy meeting on Wednesday.
Gold price on watch.
Australian gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch today after a mixed night of trade for the gold price. According to CNBC, the spot gold price dropped 0.15% to US$1,509.1 an ounce, but could shoot higher tonight if the U.S. Federal Reserve does cut rates at its meeting.
Shares trade ex-dividend.
The Webjet Limited (ASX: WEB) share price looks set to drop lower today when it trades ex-dividend for its 13.5 cents per share fully franked final dividend. Eligible shareholders will receive the online travel agent's dividend in around three weeks on October 10. Elsewhere, IPH Ltd (ASX: IPH) will be paying its 13 cents per share dividend to shareholders today.
