On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought hard for a small gain. The benchmark index ended the day 0.1% higher at 7,663 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to rise again on Wednesday despite a mixed session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher. In late trade on Wall Street, the Dow Jones is down 0.4%, the S&P 500 is flat, and the Nasdaq is 0.2% higher.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$78.80 a barrel and the Brent crude oil price is up 1.2% to US$83.52 a barrel. Traders are anticipating production cuts from OPEC.
Flight Centre results
The Flight Centre Travel Group Ltd (ASX: FLT) share price will be on watch today when the travel agent releases its half-year results. Goldman Sachs expects sales growth of 28.5% to $1,288.1 million and earnings before interest and tax (EBIT) growth of 344.9% over the prior corresponding period. This is modestly higher than the market consensus estimate.
Gold price rises
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a reasonably positive session on Wednesday after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$2,042.3 an ounce. Traders appear to be expecting upcoming US inflation data to support rate cuts.
Coles rated as a sell
Coles Group Ltd (ASX: COL) shares are overvalued according to analysts at Goldman Sachs. This morning, in response to the supermarket operator's half-year results, the broker has retained its sell rating with an improved price target of $15.10. This implies 10% downside from current levels. It said: "FY24-26e EBIT +2% to 6% on positive cost management though still below Consensus on EBIT with relative valuation gap closed."
