5 things to watch on the ASX 200 on Wednesday

BHP Group Ltd (ASX:BHP) and Coles Group Ltd (ASX:COL) shares will be on watch on the ASX 200 on Wednesday…

Young man with laptop watching stocks and trends while thinking

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »