On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.45% to 7,683.5 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise again
It looks set to be another good session for the Australian share market on Wednesday following a strong night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.3% higher. On Wall Street, the Dow Jones rose 0.7%, the S&P 500 jumped 1.2%, and the Nasdaq stormed 1.6% higher.
Oil prices rebound
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$83.32 a barrel and the Brent crude oil price is up 1.6% to US$88.38 a barrel. Renewed rate cut hopes boosted oil prices.
Fortescue quarterly update
Fortescue Ltd (ASX: FMG) shares will be on watch on Wednesday when the mining giant releases its third quarter update. The market is forecasting iron ore shipments of 44.8Mt for the three months. This will be down 7.8% on what was shipped during the second quarter. This is expected to be achieved with a realised iron ore price of US$86 a tonne.
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 0.4% to US$2,336.1 an ounce. Traders were selling the precious metal in response to the release of US economic data.
Northern Star shares rated neutral
The Northern Star Resources share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating on the gold miner's shares with a trimmed price target of $14.50. Goldman commented: "Group gold production of 387koz was below expectations, and down 9% QoQ, on softer production at Yandal and Pogo. […] we continue to rate NST a relative Neutral on valuation, trading on ~1.2x NAV, or pricing ~US$2,060/oz gold (peer average ~1.05x NAV and ~US$1,900/oz), with growth spend leaving FCF yields at c.3-6% over the next 3 years, and a more concentrated near-term execution risk."
