On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and stormed notably higher. The benchmark index rose 0.95% to 7,313.9 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to rise again
The Australian share market looks set to continue its positive run on Wednesday following another strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.7% higher this morning. In late trade in the United States, the Dow Jones is up 1.45%, the S&P 500 is up 2.1%, and the Nasdaq is trading a massive 3.1% higher.
Life360 added to ASX 200
The Life360 Inc (ASX: 360) share price could have a strong day on Wednesday. As well as benefiting from improving investor sentiment in the tech sector, the app maker's shares have been given a boost from their inclusion in the ASX 200 index at the quarterly rebalance later this month. Life360 joins amid the exit of Oil Search Ltd (ASX: OSH) due to its merger with Santos Ltd (ASX: STO).
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a great day after oil prices jumped again. According to Bloomberg, the WTI crude oil price is up 3.8% to US$72.14 a barrel and the Brent crude oil price has risen 3.4% to US$75.55 a barrel. Easing Omicron concerns and delays to Iranian crude returning to the market boosted prices.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.35% to US$1,785.7 an ounce. The gold price pushed higher despite Omicron concerns easing.
CBA remains a sell
The Commonwealth Bank of Australia (ASX: CBA) share price is overvalued according to the team at Goldman Sachs. According to a note, the broker has retained its sell rating on the banking giant's shares with an improved price target of $82.57. Goldman doesn't believe CBA's shares deserve to trade at such a premium to the rest of the big four banks.
