It was another bumpy day for the S&P/ASX 200 Index (ASX: XJO) on Tuesday, but it ended on a high. The benchmark index climbed 0.3% to 5,835.1 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise.
It looks set to be another positive day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the benchmark index is poised to rise 32 points or 0.55% at the open. This follows another strong night of trade on Wall Street. The Dow Jones rose 1.05%, the S&P 500 climbed 0.8%, and the Nasdaq index pushed 0.6% higher.
Australian first quarter GDP.
Late this morning the Australian Bureau of Statistics will release first quarter GDP. According to the economics team at Westpac Banking Corp (ASX: WBC), it expects Australian GDP to have fallen by 0.7% during the quarter. It believes there is a risk that output fell as shutdowns took place during March. The market consensus is for a 0.3% decline for the quarter.
Oil prices jump.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be on the rise today after oil prices jumped higher overnight. According to Bloomberg, the WTI crude oil price stormed 4.25% higher to US$36.95 a barrel and the Brent crude oil price pushed 3.6% higher to US$39.70 a barrel. Traders were buying oil ahead of the upcoming OPEC+ meeting.
Gold price drops lower.
It could be another tough day for gold miners including Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) after the gold price dropped lower again. According to CNBC, the spot gold price fell 0.95% to US$1,733.70 an ounce. The price of the precious metal tumbled after Wall Street began betting on a successful economic restart.
BHP and Rio Tinto rated as buys.
The shares of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could be on the rise today after Goldman Sachs reaffirmed its buy rating on both mining giants. And in response to higher iron ore forecasts, the broker has lifted its price targets on both companies. Goldman has a $37.80 price target on BHP’s shares and a $101.10 price target on Rio Tinto’s shares.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.