On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 7,112.5points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to storm higher
The Australian share market looks set for a very strong day on Wednesday following a stellar night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.95% higher this morning. On Wall Street, the Dow Jones rose 1.35%, the S&P 500 climbed 2%, and the Nasdaq stormed 2.75% higher.
Pendal rated as a buy
The Pendal Group Ltd (ASX: PDL) share price could be good value according to analysts at Bell Potter. According to a note, the broker has retained its buy rating with an improved price target of $6.90. The broker believes Pendal's half-year result and its recent takeover approach demonstrate how "undervalued asset managers have become."
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 pulled back. According to Bloomberg, the WTI crude oil price is down 1.9% to US$112.05 a barrel and the Brent crude oil price has fallen 2.5% to US$111.36 a barrel. Hopes that additional Venezuelan supply could hit the market soon has put pressure on prices.
Champion Iron acquisition
The Champion Iron Ltd (ASX: CIA) share price will be on watch today after the iron ore miner announced a new acquisition. The company has signed a deal to acquire the Pointe Noire Iron Ore Pelletizing Facility located in Sept-Iles, Québec. In addition, Champion is in talks with a major international steelmaker to complete a feasibility study to evaluate the re-commissioning of the Pellet Plant and produce Direct Reduction Grade Pellets.
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,813.2 an ounce. Strong US retail sales boosted the US dollar and weighed on gold.
