On Tuesday the S&P/ASX 200 Index (ASX: XJO) was back on form and raced higher. The benchmark index jumped 1.5% to 7,342.2 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 edge lower on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% lower this morning. This is despite it being a positive night of trade on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.5%, and the Nasdaq storm 0.8% higher.
Oil prices soften
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could trade lower on Wednesday after oil prices retreated. According to Bloomberg, the WTI crude oil price is down 0.8% to US$73.08 a barrel and the Brent crude oil price is down 0.1% to US$74.83 a barrel. This appears to have been driven by profit taking from some traders.
Tech shares could push higher
It could be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX). They could be on the rise today after the Nasdaq index stormed to a new record high. As the local tech sector tends to follow the Nasdaq’s lead, this bodes well for today’s trading session.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price fell overnight. According to CNBC, the spot gold price is down 0.3% to US$1,776.70 an ounce. Traders were selling the precious metal ahead of the release of a testimony from U.S. Federal Reserve chair Jerome Powell. That testimony is expected to provide more clarity on monetary policy plans.
Iron ore price rebounds
After a tough couple of days, the iron ore price is rebounding, which could bode well for BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) shares today. According to Metal Bulletin, the spot iron ore price is up 3% to US$214.32 a tonne.