On Tuesday the S&P/ASX 200 Index (ASX: XJO) rebounded from its Monday selloff with a strong gain. The benchmark index climbed a sizeable 1.4% to 5,897.9 points.
Will the market be able to build on this on Wednesday? Here are five things to watch
ASX 200 expected to open lower.
The ASX 200 looks set to edge lower on Wednesday despite solid gains on Wall Street. According to the latest SPI futures, the benchmark index is poised to fall 6 points or 0.1% at the open. Over in the United States the Dow Jones is up 0.85%, the S&P 500 rose 1.5%, and the Nasdaq index pushed a sizeable 1.9% higher.
Oil prices drop.
Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could start the new financial year in the red. According to Bloomberg, the WTI crude oil price is down slightly to US$39.68 a barrel and the Brent crude oil price has fallen 1.4% to US$41.14 a barrel. Demand concerns weighed on oil prices.
Gold price jumps.
Rising coronavirus cases could mean gold miners such as Evolution Mining Ltd (ASX: NCM) and Newcrest Mining Limited (ASX: NCM) start the month in a positive fashion. According to CNBC, the spot gold price jumped 0.95% to US$1,798.20 an ounce after a spike in cases led to increasing demand for safe haven assets.
Nufarm announces changes to its manufacturing footprint.
The Nufarm Limited (ASX: NUF) share price will be on watch today after a late announcement on Tuesday. The chemicals company revealed that it will cease the manufacture of insecticides and fungicides at its Raymond Road site in Laverton, Australia. It will also curtail herbicide manufacturing at its operations in Linz, Austria. CEO Greg Hunt advised that the changes are part of a company-wide program launched in March to improve financial returns.
Westpac upgraded.
The Westpac Banking Corp (ASX: WBC) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker upgraded the banking giant's shares to a buy rating with a $20.13 price target. Goldman believes Westpac is relatively well-placed to deal with the end of the loan deferral period.
