On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and stormed higher. The benchmark index rose 1.3% to 7,309.9 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market looks set to rise on Wednesday following a relatively positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.4%, the S&P 500 is up 0.1% and the Nasdaq has dropped 0.3%.
Oil prices charge higher
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong session after a solid night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.1% to US$81.42 a barrel and the Brent crude oil price has risen 1.6% to US$85.53 a barrel. This was driven by hopes that the US Federal Reserve may ease up on its policy tightening after a key U.S. inflation report this week.
South32 shares are a buy
The South32 Ltd (ASX: S32) share price could be great value according to a note out of Goldman Sachs. This morning, its analysts have upgraded the mining giant's shares to a buy rating with a $4.90 price target. Goldman commented: "We upgrade S32 to Buy (from Neutral) on valuation and FCF and like the company for base metals exposure (~70% of EBITDA)."
Gold price higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.9% to US$2,021.1 an ounce. The precious metal rose on hopes that interest rate hikes could be coming to an end.
Buy Rio Tinto shares
Goldman Sachs is also bullish on Rio Tinto Ltd (ASX: RIO) shares and is recommending them ahead of the miner's quarterly update. This morning, the broker has reiterated its conviction buy rating with a $138.30 price target. It notes that "Pilbara shipment data [is] indicating a 13% YoY increase in Pilbara iron ore shipments to ~80Mt putting RIO well on track to hit the top end of the 320-335Mt guidance range for 2023."
