On Tuesday the S&P/ASX 200 Index (ASX: XJO) followed the lead of U.S. markets and dropped lower. The benchmark index fell 0.7% to 6,184.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to edge higher.
It looks set to be a better day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points higher. This follows a strong night on Wall Street which in late trade sees the Dow Jones up 0.55%, the S&P 500 0.65% higher, and the Nasdaq climbing 0.5%. This follows comments by Nancy Pelosi that she is optimistic that a stimulus deal will be reached.
Oil prices rise.
Energy shares Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.7% to US$41.51 a barrel and the Brent crude oil price is up 0.8% to US$42.96 a barrel. Stimulus hopes gave oil prices a lift.
Annual general meetings.
The annual general meetings continue on Wednesday with both Orora Ltd (ASX: ORA) and Service Stream Limited (ASX: SSM) scheduled to hold their virtual meetings. Both the packaging company and the essential network services company could provide trading updates at their respective meetings.
Gold price higher.
Gold miners Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch after the gold price strengthened. According to CNBC, the spot gold price is up 0.15% to US$1,914.40 an ounce following a softening U.S. dollar and stimulus optimism.
CSL rated as a buy.
The CSL Limited (ASX: CSL) share price still has further to run according to analysts at Goldman Sachs. According to a note, the broker has retained its buy rating and lifted its price target on the biotherapeutics company’s shares to $329.00. This follows the company’s R&D day on Tuesday. Overall, it was pleased with its update and has increased its valuation in response to the products under development.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Service Stream 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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