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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was in sensational form and stormed notably higher. The benchmark index jumped 1.9% to 6,037.6 points.

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

ASX 200 to give back some gains.

The ASX 200 index looks set to give back some of its gains on Wednesday. According to the latest SPI futures, the benchmark index is expected to open the day 15 points or 0.25% lower. This is despite there being another positive night of trade on Wall Street. Overnight, the Dow Jones rose 0.6%, the S&P 500 climbed 0.35%, and the Nasdaq index pushed 0.35% higher.

Oil prices push higher.

It looks set to be a positive day for energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL). According to Bloomberg, the WTI crude oil price has risen 1.3% to US$41.54 a barrel and the Brent crude oil price has climbed 0.5% to US$44.36 a barrel. Traders were buying oil after inventories declined.

Gold price smashes through US$2,000.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price surged higher again. According to CNBC, the spot gold price jumped 2.3% to US$2,033.60 an ounce. Gold hit a record high on the belief that major U.S. stimulus is coming.  

Wesfarmers rated neutral.

Analysts at Goldman Sachs have been looking at the impact that the lockdowns will have on Wesfarmers Ltd (ASX: WES). The broker has revised its FY 2021 earnings before interest and tax forecasts lower by 3.9% to reflect the lockdowns in Metropolitan Melbourne and current store numbers. This has resulted in Goldman reaffirming its neutral rating and lowering its price target to $42.00. This compares to the current Wesfarmers share price of $46.29.

Qube given buy rating.

Goldman Sachs is far more positive on the Qube Holdings Ltd (ASX: QUB) share price. This morning the broker retained its buy rating and $3.46 price target on the shares of the integrated provider of import and export logistics services. It commented: “While QUB remains substantially exposed to potential weakness in trade and container volumes, we believe it retains sufficient operational flexibility to withstand a material downturn and reiterate our positive view on the stock.”

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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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