On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index ended the day at 0.45% lower at 7,252.2 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 futures pointing higher
The Australian share market looks set to storm higher on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 0.8% higher. On Wall Street, the Dow Jones rose 1.6%, the S&P 500 climbed 1.5%, and the Nasdaq stormed 1.6% higher.
Beach Energy Ltd (ASX: BPT) and South32 Ltd (ASX: S32) shares will be ones to watch this morning when they hand in their quarterly updates. The latter is expected to have been benefitting greatly from a strong rise in aluminium prices.
Oil prices rebound
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Wednesday after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$67.32 a barrel and the Brent crude oil price is up 1.5% to US$69.54 a barrel. Traders were buying oil on the belief it had been oversold.
JB Hi-Fi shares fully valued
The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker was pleasantly surprised by the retail giant’s update. However, Goldman believes the current sales and margin strength is unsustainable and expects earnings declines in FY 2022 and then FY 2023. The broker has a neutral rating and $49.40 price target on its shares.
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,810.60 an ounce. Surging COVID-19 cases across the world could be supporting the safe haven asset.