On Tuesday, the S&P/ASX 200 Index (ASX: XJO) continued its recovery with a small gain. The benchmark index rose almost 0.2% to 7,761.7 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set to edge higher on Wednesday despite a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is down 0.25%, the S&P 500 is down 0.1%, and the Nasdaq is flat.
Oil prices soften
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after a oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down slightly to US$61.55 a barrel and the Brent crude oil price is down slightly to US$64.88 a barrel. This was driven by the IEA cutting its demand forecasts.
Rio Tinto update
All eyes will be on Rio Tinto Ltd (ASX: RIO) shares on Wednesday when the mining giant releases its first quarter update for FY 2025. According to a note out of Goldman Sachs, its analysts are expecting Rio Tinto to report iron ore shipments of 73.3 Mt (consensus 73.7Mt), copper production of 198kt (consensus 199kt), and aluminium production of 846kt (consensus 844kt).
Gold price rises
It could be a decent session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.6% to US$3,245 an ounce. A weaker US dollar and safe haven demand gave the precious metal a boost.
Buy Collins Foods shares
Investors should be buying Collins Foods Ltd (ASX: CKF) shares after Tuesday's pullback according to analysts at Goldman Sachs. According to the note, the broker has retained its buy rating and $10.00 price target on the quick service restaurant operator's shares. It said: "Collins Foods (CKF) have announced, in our view, a net positive strategic update centered on the 1) exit of the loss-making Taco Bell venture and 2) continued European KFC expansion into the larger and relatively more development-friendly Germany. While cognizant of the negatives related to challenged performance of KFC Netherlands and uncertainty around management changes, on balance we consider the update incrementally positive for Collins long-term outlook."
