5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was back on form and pushing higher. The benchmark index rose 0.15% to 7,292.6…

| More on:
Business man watching stocks while thinking

Image Source: Getty Images

On Tuesday the S&P/ASX 200 Index (ASX: XJO) was back on form and pushing higher. The benchmark index rose 0.15% to 7,292.6 points.

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

ASX 200 expected to rise

It looks set to be a positive 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 19 points or 0.25% higher this morning. This follows a reasonably positive night of trade on Wall Street, which saw the Dow Jones and S&P 500 trade flat and the Nasdaq rise 0.3%.

Oil prices charge higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid day on Wednesday after oil prices charged higher. According to Bloomberg, the WTI crude oil price is up 1.4% to US$70.19 a barrel and the Brent crude oil price is up 1.2% to US$72.34 a barrel. News that the US won’t be lifting all its sanctions on Iran gave oil prices a boost.

ResMed given neutral rating

The ResMed Inc (ASX: RMD) share price is about fair value according to Goldman Sachs. In response to its appearance at a Goldman Sachs conference, the broker has retained its neutral rating and $28.40 price target on its shares. It notes that ResMed reported that a sequential improvement in new diagnoses continues to develop. It also believes a new product launch could drive uptick in device growth.

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price softened overnight. According to CNBC, the spot gold price is down 0.2% to US$1,895.30 an ounce. The precious metal eased ahead of the release of US inflation data on Thursday.

Iron ore price rebounds

BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) shares could be on the rise today. This follows a solid night of trade for the price of the steel making ingredient. According to Metal Bulletin, the spot iron ore price is up 3.5% to US$209.50 a tonne.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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