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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed higher for a second day in a row. The benchmark index jumped 1.6% higher to 5,407.1 points.

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

ASX 200 expected to edge lower.

It looks set to be a subdued day of trade on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.3% lower this morning. This is despite the positive night of trade on Wall Street on Tuesday. The Dow Jones rose 0.55%, the S&P 500 pushed 0.9% higher, and the Nasdaq index jumped 1.1% higher.

Oil prices rocket higher.

Energy shares including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could charge higher today after oil prices rocketed higher. According to Bloomberg, the WTI crude oil price is up 22.3% to US$24.94 a barrel and the Brent crude oil price is up 15.2% to US$31.33 a barrel. Optimism around ongoing production cuts and a recovery in demand due to easing lockdowns pushed prices higher.

Gold price edges higher.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch today after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,714.90 an ounce. Central bank stimulus gave the precious metal a lift.

National Storage to return.

The National Storage REIT (ASX: NSR) share price will be on watch this morning when it returns from its trading halt. On Tuesday the storage giant announced a fully underwritten $300 million institutional placement and a non-underwritten security purchase plan to raise up to a further $30 million. These funds will be used to strengthen its balance sheet, replenish investment capacity and provide additional funding flexibility. National Storage is raising the money at a 7.1% discount of $1.69.

Qantas rated as neutral.

Analysts at Goldman Sachs have retained their neutral rating on Qantas Airways Limited (ASX: QAN) following its market update. The broker notes that Qantas has improved its liquidity, but is still burning cash in an uncertain outlook. Goldman Sachs has a $3.03 price target on the airline operator’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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