5 things to watch on the ASX 200 on Wednesday

Qantas Airways Limited (ASX:QAN) and Santos Ltd (ASX:STO) 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) faded as the day went on and gave back its earlier gains to end the session with a small decline. The benchmark index fell 0.1% to 6,745.4 points.

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

ASX 200 futures pointing lower

The Australian share market is poised to edge lower on Wednesday following a weak night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points lower this morning. In late trade on Wall Street, the Dow Jones is down 0.8%, the S&P 500 is down 0.7%, and the Nasdaq has fallen 1% This was despite bond yields falling again.

Oil prices sink lower

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 6.4% to US$57.67 a barrel and the Brent crude oil price has fallen 6.1% to US$60.69 a barrel. Concerns over demand following further third-wave lockdowns in Europe are weighing on prices.

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price tumbled lower. According to CNBC, the spot gold price is down 0.75% to US$1,725.10 an ounce. The price of the precious metal fell after a firmer US dollar outweighed a dip in U.S Treasury yields.

Qantas rated as a buy

The Qantas Airways Limited (ASX: QAN) share price is in the buy zone according to analysts at Goldman Sachs. Although the broker notes that data shows that discounting is increasing by domestic carriers, it believes investors should overlook this. It explained: “We reiterate our Buy rating on QAN.AX with our 12-month TP of A$6.38. While average ticket prices are falling, we note that a greater proportion of this travel is being taken on leisure routes and for QAN we expect greater penetration of the low-cost Jetstar brand.”

Dividends being paid

Shareholders of a number of ASX 200 shares can look forward to being paid their latest dividends later today. Among the companies paying dividends are stock exchange operator ASX Ltd (ASX: ASX), iron ore giant Fortescue Metals Group Limited (ASX: FMG), and healthcare company Sonic Healthcare Limited (ASX: SHL).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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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