5 things to watch on the ASX 200 on Wednesday

Commonwealth Bank of Australia (ASX:CBA) and Computershare Ltd (ASX:CPU) shares will be on watch on the ASX 200 on Wednesday…

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a disappointing decline. The benchmark index sank 0.85% to 6,821.2 points.

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

ASX 200 futures pointing higher

The Australian share market is expected to rebound slightly on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 0.2% or 13 points higher. This follows a mixed night of trade on Wall Street, which in late trade sees the Dow Jones up 0.1%, the S&P 500 trading flat, and the Nasdaq pushing 0.2% higher.

CBA half year update

Australia’s largest bank, Commonwealth Bank of Australia (ASX: CBA), will be on watch today when it hands in its half year report. According to a note out of Goldman Sachs, its analysts are expecting the bank to report cash earnings from continuing operations (pre-one offs) of $3,692 million and an interim dividend of $1.25 per share.

Oil prices continue to rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 0.8% to US$58.44 a barrel and the Brent crude oil price has pushed 1% higher to US$61.16 a barrel. Oil prices hit 13-month highs overnight.

Computershare results

All eyes will be on the Computershare Ltd (ASX: CPU) share price today following the after hours release of its half year results. Computershare reported a 3.2% decline in management revenue to $1.1 billion and a 52.4% tumble in margin income to $55.2 million. This led to the company’s management earnings per share falling 24.8% to 21.8 cents per share. As poor as this was, it was ahead of its guidance. Record low interest rates impacted margin income.

Gold price edges higher

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch after the gold price edged higher again. According to CNBC, the spot gold price is up 0.1% to US$1,836.30 an ounce. This was driven by US dollar weakness and stimulus hopes.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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