On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and recorded another impressive gain. The benchmark index raced 1.5% higher to 6,762.6 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 futures pointing higher
It looks set to be another positive day of trade for the ASX 200 on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 57 points or 0.85% higher this morning. This follows another strong night of trade on Wall Street. In late trade the Dow Jones is up 1.9%, the S&P 500 is 1.7% higher, and the Nasdaq is also trading 1.7% higher. Markets appear to be moving on from the GameStop mania.
Oil prices push higher
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after another positive night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.3% to US$54.78 a barrel and the Brent crude oil price has climbed 2.1% to US$57.51 a barrel. Oil prices pushed higher after producers committed to their output caps.
The Amcor CDI (ASX: AMC) share price will be on watch today when it released its half year results. According to a note out of Morgans, it is expecting the packaging giant to deliver a strong result. Particularly given its strong start to the financial year, which saw the company deliver a 20% increase in earnings per share during the first quarter. Amcor’s services were recognised as an essential service during the pandemic.
Gold (and silver) price sinks
Gold miners including Newcrest Mining Ltd (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure today after the gold price sank lower. According to CNBC, the spot gold price is down 1.5% to US$1,833.20 an ounce. Elsewhere, the silver price came crashing back down to earth and dropped 9% during overnight trade after the Reddit trade fizzled out.
Carsales upgraded to buy rating
The Carsales.Com Ltd (ASX: CAR) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker upgraded the auto listings company’s shares to a buy rating with a $22.60 price target. It commented: “Despite consensus earnings upgrades since vaccines emerged, CAR multiples have compressed to the extent it now trades at a 21% 12mf EV/EBITDA discount to AU classified peers, its greatest level in recent history.”