On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had one of its best sessions in some time. The benchmark index stormed 1.1% higher to 8,795.7 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 fall
The Australian share market looks set to fall on Wednesday despite a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% lower this morning. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is up 0.4%, and the Nasdaq is up 0.5%.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.75% to US$58.45 a barrel and the Brent crude oil price is up 0.6% to US$58.45 a barrel. Traders were buying oil in response to geopolitical risks.
Lendlease update
Lendlease Group (ASX: LLC) shares will be on watch on Wednesday after the real estate developer announced that it has grown its Development and Construction pipelines. The company revealed that it has secured the Sydney Metro Hunter Street West Over Station Development, which includes construction of the metro station. The project includes development of a 52-storey premium commercial tower on the corner of George Street and Hunter Street in the Sydney CBD that will be delivered by Lendlease. It estimates that the gross end value will be ~$2.2 billion for the West Tower and ~$1.5 billion for construction of the station. The project is targeted to commence in FY 2027 and complete in 2032. This is in line with the station's planned opening.
Gold price storms higher
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a strong session on Wednesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,517.6 an ounce. The precious metal hit a new record high amid increased demand for safe haven assets.
Buy Fenix shares
Bell Potter thinks that Fenix Resources Ltd (ASX: FEX) shares are in the buy zone. This morning, the broker reiterated its buy rating on the iron ore miner's shares with an improved price target of 70 cents. It said: "FEX continues to grow its portfolio of low capital mining assets, leveraging its integrated logistics networks to underpin cash flows for growth and shareholder returns. The company holds the largest storage position at the strategic and fastgrowing Geraldton Port. The expanded FEX-SMC agreement provides a clear pathway to 10Mtpa iron ore production at significantly lower unit costs."
