On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and charged higher. The benchmark index rose 1% to 7,040.6 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 again
The Australian share market looks set to rise again on Wednesday following a solid session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.45%, the S&P 500 has risen 0.6%, and the Nasdaq is 0.7% higher.
Oil prices soften
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$85.80 a barrel and the Brent crude oil price has fallen 0.75% to US$87.49 a barrel. Demand concerns offset potential supply disruptions in the Middle East.
Lynas rated as a buy
Goldman Sachs believes that Lynas Rare Earths Ltd (ASX: LYC) shares are good value at current levels. This morning, the broker has upgraded the rare earths producer's shares to a buy rating with a $7.40 price target. Goldman made the move on valuation grounds after incorporating the company's US Heavy Rare Earth (HRE) refinery into its base case.
Gold price rises
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.5% to US$1,873.4 an ounce. Traders appear to have been buying the dip in the gold price.
AGM season is here
Annual general meeting season is here and two of Australia's biggest companies will be gathering for their respective meetings today. These are banking giant Commonwealth Bank of Australia (ASX: CBA) and biotherapeutics leader CSL Limited (ASX: CSL). Both could potentially provide trading updates at the meeting. Beyond the mega-caps, investors will also be parsing an off-cycle strategic briefing from Aristocrat Leisure (ASX: ALL). The gaming technology powerhouse is expected to shed light on its aggressive European digital expansion, with analysts particularly keen on revenue projections stemming from the company's recent contract to supply backend infrastructure for a fully regulated online casino Greece is rolling out this quarter.
