On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.55% to 8,808.5 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
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ASX 200 to edge higher
The Australian share market looks set for a subdued session on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 0.3%, and the Nasdaq is 0.3% lower.
Oil prices rise
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 2.6% to US$61.01 a barrel and the Brent crude oil price is up 2.2% to US$65.31 a barrel. This was driven by news that Donald Trump cancelled meetings with Iran and told protesters that help is on the way.
Hold Codan shares
After a huge gain over the past 12 months, Codan Ltd (ASX: CDA) shares are now fairly valued according to analysts at Bell Potter. The broker has retained its hold rating with an increased price target of $36.70 (from $27.80). It said: "We believe CDA shares trade at fair value on 33x EV / EBIT (59% above its 2-year average) amidst improving operating momentum and improving outlook in both segments. Given the seasonality evident in the Metal Detection business we see potential for a FY26e Metal Detection revenue upgrade if positive commentary is given at the 1H26e result."
Gold price softens
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price softened. According to CNBC, the gold futures price is down 0.3% to US$4,601.5 an ounce. The precious metal hit a record high on increased US Fed interest rate cut bets before easing back.
Buy Liontown shares
Lithium miner Liontown Ltd (ASX: LTR) could be in the buy zone according to Bell Potter. In response to stronger than expected lithium prices, the broker has retained its buy rating with a vastly improved price target of $2.48 (from $1.52). It said: "Under our updated price outlook, LTR deleverages from net debt of $274m at 30 September 2025 to a net cash position by the end of 2026. EPS changes as a result of these upgrades are: now +2.3cps (previously -2.3cps); FY27 +230%; & FY28 +106%. LTR's 100% owned Kathleen Valley lithium project is highly strategic in terms of scale, long project life and location in a tier-one mining jurisdiction."
