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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its sensational form and stormed a further 2.9% higher to 5,780 points.

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

ASX 200 expected to tumble.

The ASX 200 index looks set to give back some of yesterday’s gains on Wednesday. According to the latest SPI futures, the index is expected to open the day 63 points or 1.1% lower this morning. This follows a positive but not spectacular start to the week on Wall Street overnight following Monday’s public holiday. The Dow Jones rose 2.2%, the S&P 500 climbed 1.2%, and the Nasdaq edged 0.2% higher.

Oil prices climb higher.

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped higher. According to Bloomberg, the WTI crude oil price has pushed 3% higher to US$34.24 a barrel and the Brent crude oil price is up 1.9% to US$36.20 a barrel. Traders appear optimistic that major producers are following through on their supply cut promises.

Gold price sinks lower.

It could be a difficult day for gold miners including Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) after the gold price sank lower overnight. According to CNBC, the spot gold price fell 1.9% to US$1,703.00 an ounce. This was driven by investors switching out of safe haven assets and back into risk assets.

ALS full year update.

The ALS Ltd (ASX: ALQ) share price will be on watch today when the testing services company releases its full year update. Last week analysts at Credit Suisse upgraded its shares to an outperform rating with an $8.00 price target. They appear confident that ALS will deliver a decent result this morning.

Coca-Cola Amatil upgraded.

The Coca-Cola Amatil Ltd (ASX: CCL) share price will be on watch today after analysts at Goldman Sachs upgraded the beverage company’s shares to a neutral rating with a price target of $9.50. This follows the release of a trading update at its annual general meeting on Tuesday. The broker made the move on valuation grounds after a sharp pullback in its share price over the last 12 months.

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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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