5 things to watch on the ASX 200 on Wednesday

Here’s what to watch on the ASX 200 on Wednesday…

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) finished well off its intraday lows but still recorded a sizeable decline. The benchmark index fell 0.4% to 7,248.4 points.

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

ASX 200 expected to rebound

The Australian share market is expected to rebound on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 49 points or 0.7% higher. This follows a very strong night of trade on Wall Street. In late trade the Dow Jones is up 1.35%, the S&P 500 is up 1.4%, and the Nasdaq is up 1.6%.

Bank of Queensland rated as a buy

The team at Goldman Sachs believe the Bank of Queensland Limited (ASX: BOQ) share price could be in the buy zone. Ahead of its full year results later this month, the broker has retained its buy rating and $10.09 price target on the regional bank’s shares. Goldman expects the bank to deliver an 80% increase in cash earnings to $406 million.

Oil prices hit three-year highs

Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher today after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 1.95% to US$79.15 a barrel and the Brent crude oil price is up 1.85% to US$82.78 a barrel. Traders were bidding oil prices to three-year highs after OPEC stuck to its gradual output increase plan.

A2 Milk hit with class action

The A2 Milk Company Ltd (ASX: A2M) share price will be on watch today after it emerged that the embattled infant formula company has been hit with a class action. Slater & Gordon Limited (ASX: SGH) alleges that a2 Milk Company was or ought to have been aware that the FY 2021 guidance and subsequent representations did not adequately take account of a number of factors which would impact the Company’s financial performance.

Gold price falls

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could trade lower today after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,761.7 an ounce. The precious metal dropped after the US dollar strengthened and investor sentiment improved.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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