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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 and stormed notably higher. The benchmark index ended the day a sizeable 0.85% higher at 6,962.2 points.

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

ASX 200 expected edge higher.     

The S&P/ASX 200 index looks set to edge higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to rise 5 points or 0.1% at the open. This follows a mixed night of trade on Wall Street. In late trade the Dow Jones is up 0.1%, the S&P 500 is down 0.3%, and the Nasdaq index has fallen 0.35%.

Oil prices rise.

Energy shares including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could push higher today after oil prices strengthened. According to Bloomberg, the WTI crude oil price rose 0.6% to US$58.41 a barrel and the Brent crude oil price has climbed 0.9% to US$64.75 a barrel. This is the first gain in five trading days for oil prices.

Gold price tumble.

Northern Star Resources Ltd (ASX NST), Resolute Mining Limited (ASX: RSG), and the rest of the gold miners could come under pressure again after the gold price tumbled lower. According to CNBC, the spot gold price fell 0.25% to US$1,547.20 an ounce. Traders have been selling gold ahead of the signing of a trade deal between the US and China.

Caltex takeover.

The Caltex Australia Limited (ASX: CTX) share price could be on the move today amid speculation that takeover talks are progressing. According to the AFR, the stalemate between the fuel retailer and its Canadian suitor has finally been broken. The report claims that Caltex will make a presentation to Alimentation Couche-Tard on Thursday in Sydney.

Saracen Mineral given buy rating.

The Saracen Mineral Holdings Limited (ASX: SAR) share price will be on watch today after Goldman Sachs reinstated coverage on the gold miner with a buy rating. Its analysts believe Saracen has the most compelling production and earnings growth profile in its coverage. Goldman forecasts a +28% 5-year earnings per share CAGR. The broker has a $4.30 price target on Saracen’s shares.

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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.

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