On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back some strong gains to end the day roughly flat at 6,012.9 points.
Will the market be able to better this on Wednesday? Here are five things to watch
ASX 200 expected to drop lower.
The ASX 200 looks set to drop lower on Wednesday after a disappointing night on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 28 points or 0.5% lower this morning. On Wall Street the Dow Jones fell 1.55%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 0.85%. This follows news that Texas has reported over 10,000 new coronavirus cases.
Afterpay to return.
The Afterpay Ltd (ASX: APT) share price is expected to return from its trading halt on Wednesday. The payments company requested the halt on Tuesday while it sought to raise $800 million from investors. This capital raising comprises a $650 million fully underwritten placement to institutional investors and a $150 million share purchase plan. Afterpay intends to raise the funds at $61.75 per new share, which represents a 9.2% discount to its last close price. The company also released a very strong trading update.
Oil prices slide.
Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after a weak night of trade for oil prices. According to Bloomberg, the WTI crude oil price is down 0.55% to US$40.41 a barrel and the Brent crude oil price is down 0.5% to US$42.87 a barrel. Rising coronavirus cases has sparked concerns that demand could soften.
Gold price jumps.
Gold miners including Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) could push higher today after the gold price jumped overnight. According to CNBC, the spot gold price stormed 0.8% to US$1,807.70 an ounce after a spike in coronavirus cases spooked markets.
Rio Tinto downgraded.
The Rio Tinto Limited (ASX: RIO) share price will be on watch on Wednesday after analysts at Goldman Sachs downgraded the mining giant to a neutral rating with a $95.10 price target. According to the note, the broker believes Rio Tinto’s shares are fully valued at the current level. In addition to this, it believes the iron ore price could fall to US$80 to US$85 per tonne during the second half of the year.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.