On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.3% to 7,253.3 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 edge lower
The Australian share market looks set to edge lower on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 is down 0.25%, and the Nasdaq has fallen 0.6%.
Oil prices rise
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$78.60 a barrel and the Brent crude oil price has risen 0.8% to US$83.84 a barrel. Oil prices rose amid hopes that China could ease COVID restrictions and boost demand.
Whitehaven Coal upgraded
The Whitehaven Coal Ltd (ASX: WHC) share price could be great value according to analysts at Bell Potter. This morning the broker has upgraded the coal miner's shares to a buy rating with an improved price target of $11.00. It commented: "Upside risk to pricing across the energy complex in the northern hemisphere winter, exacerbated by sanctions on Russian supply, are the key drivers of our strong coal price, near-term WHC earnings and dividend outlook and recommendation upgrade."
Gold price higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.6% to US$1,765.9 an ounce. The gold price rose thanks to the softening of the US dollar and hopes of slower rate hikes.
Broker says buy the Collins Foods weakness
Analysts at Morgans see value in the Collins Foods Ltd (ASX: CKF) share price following a selloff on Tuesday. This morning, the broker has retained its add rating with a slashed price target of $9.50. The broker commented: "We maintain an ADD rating. We believe the forward multiples are sufficiently low to warrant a consideration of the medium-term recovery in margins."
