On Tuesday the S&P/ASX 200 index recovered from a weak start to finish the day with a small gain. The benchmark index ended the day 0.15% higher at 6,652 points.
Will the local share market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise.
The S&P/ASX 200 index looks set to storm higher on Wednesday following a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to rise 58 points or 0.85% at the open. On Wall Street the Dow Jones surged 0.9% higher, the S&P 500 climbed 1%, and the Nasdaq jumped 1.2%.
Oil prices tumbles.
Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 1.3% to US$52.87 a barrel and the Brent crude oil price dropped 0.9% to US$58.82 a barrel. Soft Chinese economic data weighed on prices.
Gold price sinks.
Australian gold miners such as Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) could be on the slide today after the spot gold price sank lower overnight. According to CNBC, the spot gold price has fallen 0.85% to US$1,485 an ounce.
Dividends being paid.
A number of popular shares are scheduled to pay their latest dividends later today. This includes steel production giant BlueScope Steel Limited (ASX: BSL) and media conglomerate NEWS CORP (ASX: NWS).
NAB rated as a buy.
The National Australia Bank Ltd (ASX: NAB) share price will be on watch today after analysts at Goldman Sachs retained their conviction buy rating on its shares after APRA amended capital treatment of investments in subsidiaries. According to the note, the broker doesn’t believe NAB will be impacted. In light of this, it remains bullish due to its superior revenue momentum and its view that it will deliver the strongest earnings per share growth in the group over the next three years.
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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 National Australia Bank Limited. 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.