On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped lower. The benchmark index fell 0.2% to 7,033.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
It looks set to be a decent day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher this morning. This is despite a reasonably poor night of trade on Wall Street, which saw the Dow Jones and S&P 500 trade flat and the Nasdaq fall 0.35%.
Oil prices jump
It could be a good day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Wednesday after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 2.1% to US$63.22 a barrel and the Brent crude oil price has risen 1.6% to US$66.71 a barrel. Traders were buying oil amid optimism that OPEC will not increase production due to rising COVID cases.
Coles third quarter update
The Coles Group Ltd (ASX: COL) share price will be one to watch this morning when it releases its third quarter update. According to a note out of Goldman Sachs, it expects Coles to report a 3% decline in comparable food sales for the quarter but a 2% increase in liquor sales. This is expected to lead to total sales of $9,039.6 million, comprising food sales of $7,960.4 million and liquor sales of $802.5 million.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.25% to US$1,775.60 an ounce. Traders appear nervous ahead of the next US Federal Reserve meeting.
Iron ore price continues to rise
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shareholders will be pleased to see that the iron ore price has continued its rise. According to Metal Bulletin, the spot iron ore price rose a further 0.9% to US$195.31 per tonne. This is a record high for the steel making ingredient.