On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a great day and stormed higher. The benchmark index rose 0.7% to 7,464.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
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ASX 200 expected to rise
It looks set to be another good day for the Australian share market on Wednesday following a positive night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.8%, the S&P 500 is up 1.2%, and the Nasdaq is up a sizeable 1.9%.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.5% to US$104.37 a barrel and the Brent crude oil price has fallen 1.9% to US$110.28 a barrel. Promising signals from Russia-Ukraine peace talks weighed on prices.
Federal Budget
Last night the federal government delivered its pre-election budget with a focus on two key themes: the cost of living and national security. Some ASX 200 shares that look set to benefit include JB Hi-Fi Limited (ASX: JBH) and Xero Limited (ASX: XRO) from a "go digital" incentive and toll road operator Transurban Group (ASX: TCL) from a 22 cents per litre fuel excise reduction for six months.
Gold price down again
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price continued to fall. According to CNBC, the spot gold price is down 1.1% to US$1,921.5 an ounce. This has been driven by Russia-Ukraine peace talks reducing safe haven asset demand.
Dividends being paid
It's a very big day for dividend payments on Wednesday with a number of popular ASX 200 dividend shares rewarding their shareholders today. This includes energy company AGL Energy Limited (ASX: AGL), banking giant Commonwealth Bank of Australia (ASX: CBA), iron ore miner Fortescue Metals Group Limited (ASX: FMG), and conglomerate Wesfarmers Ltd (ASX: WES).
