On Tuesday the S&P/ASX 200 index pushed higher again and recorded a solid 0.3% gain to 6,672.2 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 lower.
The S&P/ASX 200 index looks set to edge lower following a soft night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to fall 4 points or 0.05% at the open. On Wall Street the Dow Jones fell 0.1%, the S&P 500 dropped 0.3%, and the Nasdaq tumbled 0.7% lower. A series of disappointing earnings releases weighed on sentiment.
Oil prices surge higher.
It could be a positive day of trade for Santos Ltd (ASX: BPT), Woodside Petroleum Limited (ASX: WPL), and the rest of Australia's energy producers after oil prices surged higher overnight. According to Bloomberg, the WTI crude oil price rose 1.6% to US$54.16 a barrel and the Brent crude oil price pushed 1% higher to US$59.55 a barrel. News that OPEC plans to cut production further sent prices hurtling higher.
Trading halts end.
Both Costa Group Holdings Ltd (ASX: CGC) and WiseTech Global Ltd (ASX: WTC) shares are scheduled to return from their trading halts today. Costa is due to release a trading update which is likely to be yet another guidance downgrade. Whereas WiseTech Global will provide a response to a second short seller report.
Gold edges higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the spot gold price pushed higher. According to CNBC, the spot gold price rose 0.2% to US$1,491.2 an ounce.
Cochlear rated neutral.
The Cochlear Limited (ASX: COH) share price tumbled 5.5% on Tuesday, but not enough for analysts at Goldman Sachs change their neutral rating and $211.00 price target. Goldman notes that Cochlear has reduced its LTIP targets to more "realistic" levels. The new target range is an earnings per share CAGR of 7.5-12.5% from 10-20%. It believes this is a sign that its future growth will be more challenging.
