On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.5% to 7,235.3 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 for a subdued session on Wednesday despite a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower this morning. In late trade on Wall Street, the Dow Jones is up 0.35%, the S&P 500 has risen 0.3%, and the Nasdaq is 0.45% higher.
Oil prices sink
It could be a tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4% to US$68.46 a barrel and the Brent crude oil price is down 3.85% to US$73.10 a barrel. Traders were selling oil amid demand concerns.
Lynas shares rated as a buy
Goldman Sachs thinks that investors should be snapping up Lynas Rare Earths Ltd (ASX: LYC) shares while they're at a 52-week low. According to a note, the broker has retained its buy rating with an improved price target of $7.50. Goldman "believes investors should look through FY24 considering it is a transitional year."
Gold price edges higher
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a relatively positive session on Wednesday after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,995.9 an ounce. Traders appear undecided on gold after data showed that U.S. consumer inflation rose unexpectedly in November.
Pilbara Minerals is a hold
Bell Potter thinks that Pilbara Minerals Ltd (ASX: PLS) shares are a hold at current levels. This morning, the broker has initiated coverage on the lithium miner with a hold rating and a $3.90 price target. It commented: "We are confident that EV-led demand will see strong medium to long-term lithium market fundamentals." However, it doesn't see enough value on offer here currently to have a more positive rating.
