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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains to finish the day lower. The benchmark index fell 0.4% to 6,020.5 points.

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

ASX 200 expected to drop lower.

The ASX 200 is expected to drop lower again on Wednesday after a poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 24 points or 0.4% at the open. On Wall Street the Dow Jones fell 0.8%, the S&P 500 dropped 0.65%, and the Nasdaq tumbled 1.3% lower.

Rio Tinto half year results.

The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Wednesday when it releases its half year results. According to a note out of Goldman Sachs, it expects the mining giant to report underlying earnings of US$4 billion and underlying EBITDA of US$9.1 billion. In respect to its dividend, Goldman is expecting Rio Tinto to declare a US$1.51 per share interim dividend.

Virgin Money UK Q3 update.

The Virgin Money UK PLC (ASX: VUK) share price could be on the rise today following the release of its third quarter update after the market close on Tuesday. The UK-based bank reported a 4.8% increase in customer deposits to £67.7 billion and a 5.7% increase in Business lending growth to £8.8 billion. Over in the UK, the Virgin Money share price rose 2.5% overnight.

Oil prices pull back.

Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices pulled back. According to Bloomberg, the WTI crude oil price fell 1.3% to US$41.06 a barrel and the Brent crude oil price dropped 0.35% to US$43.26 a barrel. Oil prices tumbled after rising coronavirus cases sparked demand fears.

Gold price jumps again.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Wednesday after the gold price continued its ascent. According to CNBC, the spot gold price rose 1% to US$1,950.30 an ounce. This could be the start of even greater rises, with some analysts tipping the price of the precious metal to go materially higher from here.

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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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