On Tuesday the S&P/ASX 200 Index (ASX: XJO) followed the lead of global markets and stormed higher. The benchmark index rose 0.5% to 6,700.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 to drop lower.
It looks set to be a much tougher day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.45% lower this morning. This follows a subdued night of trade on Wall Street which late on sees the Dow Jones down 0.35%, the S&P 500 down 0.2%, and the Nasdaq 0.4% lower.
Oil prices recover.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices recovered overnight. According to Bloomberg, the WTI crude oil price is up 0.45% to US$47.83 a barrel and the Brent crude oil price has risen 0.3% to US$51.00 a barrel. Oil prices rose on hopes that US COVID stimulus will fuel increased demand.
Tech shares on watch.
Australian tech shares including Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) were on form on Tuesday and charged higher. This helped drive the S&P ASX All Technology Index (ASX: XTX) a sizeable 1.9% higher yesterday. However, a weak night of trade on the technology-focused Nasdaq index could see these shares reverse some of their gains on Wednesday.
Gold price edges higher.
Gold miners such as Evolution Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price has risen 0.1% to US$1,881.70 an ounce. A softer US dollar boosted the price of the precious metal.
Iron ore price softens.
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares could come under a spot of pressure today after the iron ore price softened. According to Metal Bulletin, the spot iron ore price has fallen 0.5% to US$163.02 a tonne overnight.
