On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced higher. The benchmark index rose 1.2% to 8,770.4 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 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 17 points or 0.2% higher this morning. In the United States, the Dow Jones was down 0.15% the S&P 500 fell 0.5%, and the Nasdaq dropped 0.65%.
Oil prices fall
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$65.17 a barrel and the Brent crude oil price is down 1.6% to US$67.65 a barrel. Concerns over OPEC's planned output increase continues to weigh on sentiment.
REA Group results
REA Group Ltd (ASX: REA) shares will be on watch today when the property listings giant releases its full year results. According to a note out of Bell Potter, its analysts are expecting the company to report a 16% increase in group revenue to $1,682 million and an 18% lift in EBITDA to $977 million. These are both in line with consensus estimates. However, Bell Potter expects its adjusted net profit after tax to fall 2% short of consensus estimates at $552 million (cons. $566 million).
Gold price rises
It looks set to be a decent session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.25% to US$3,434.5 an ounce. Rate cut bets have given the precious metal a boost.
Buy Telix shares
Bell Potter thinks that Telix Pharmaceuticals Ltd (ASX: TLX) shares are great value after crashing deep into the red on Tuesday. According to the note, the broker has retained its buy rating on the radiopharmaceuticals company's shares with a trimmed price target of $33.00 (from $34.00). It said: "The triple whammy of the complete response letter on Pixclara, the SEC investigation on the prostate cancer therapies and now the increase in opex beyond market expectation are not easily ignored. Despite these events, the catalysts described above are highly compelling as we set out in our note of 10 July. The data supporting the approval of Zircaix is gold standard and we believe the BLA is likely to receive approval."
