On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and raced higher. The benchmark index jumped 0.9% to 7,379.5 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower
The Australian share market looks set to give back some of its recent gains on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% lower this morning. This follows a nervy night of trade on Wall Street, which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.2%, and the Nasdaq tumble 0.7%.
Oil prices charge higher
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong day on Wednesday after oil prices charged higher again. According to Bloomberg, the WTI crude oil price is up 2% to US$72.28 a barrel and the Brent crude oil price is up 1.8% to US$74.15 a barrel. Oil prices climbed after the threat of near term supply from Iran receded.
Bank of Queensland rated as a buy
The Bank of Queensland Limited (ASX: BOQ) share price could be heading higher from here. That’s the view of analysts at Goldman Sachs, who have retained their buy rating and lifted their price target to $9.85. This follows yesterday’s $75 million collective provision release. Goldman commented: “We upgrade our FY21/22E/FY23E cash EPS by +13.1%/-0.7%/+2.5%, driven by i) the A$75 mn collective provision release resulting in lower BDDs, and ii) BOQ’s better volume performance, particularly in housing.”
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 again. According to CNBC, the spot gold price is down 0.3% to US$1,860.0 an ounce. Traders continue to sell the precious metal ahead of today’s US Federal Reserve meeting.
Iron ore price rises
BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) shares could have a positive day after the spot iron ore price continued its ascent. According to Metal Bulletin, the spot iron ore price is up a further 0.5% to US$221.87 a tonne.