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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 index ended its winning run with a small decline. The benchmark index fell 0.2% to 7,066.3 points.

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

ASX 200 expected to edge higher.

The S&P/ASX 200 index is poised to edge higher this morning. According to the latest SPI futures, the ASX 200 is poised to rise 9 points or 0.1% at the open. Over in the United States, in late trade the Dow Jones is down 0.65%, the S&P 500 is 0.2% lower, and the Nasdaq has fallen 0.2%.

Coronavirus arrives in the United States.

Shares in the United States came under pressure after the Centers for Disease Control and Prevention confirmed the first case of coronavirus in the country. This could weigh on travel and tourism shares such as Corporate Travel Management Ltd (ASX: CTD) and Webjet Limited (ASX: WEB) on Wednesday.

Oil prices lower.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure today after oil prices dropped lower. According to Bloomberg, the WTI crude oil price is down 0.5% to US$58.25 a barrel and the Brent crude oil price has fallen 1% to US$64.54 a barrel. Oil prices tumbled lower after traders shrugged off concerns about Libyan oilfield shutdowns.

Gold price edges lower.

Evolution Mining Ltd (ASX: EVN), Newcrest Mining Limited (ASX: NCM), and the rest of the gold miners will be on watch today after the gold price edged lower. According to CNBC, the spot gold price has pulled back from its two-week high and dropped 0.2% to US$1,557.50 an ounce.

NAB rated as a buy.

The National Australia Bank Ltd (ASX: NAB) share price could be going notably higher from here according to one leading broker. A note out of Goldman Sachs reveals that it has reiterated its conviction buy rating and $29.84 price target. NAB remains its preferred bank exposure based on its view that NAB’s revenue momentum will remain superior to peers.

Blue chips named as buys.

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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 and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Webjet Ltd. 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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