On Tuesday, the S&P/ASX 200 Index (ASX: XJO) returned from the long weekend with a bang. The benchmark index rose 0.9% to 8,941.6 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 to rise again
The Australian share market looks set to rise again on Wednesday after a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.5% higher this morning. In late trade in the United States, the Dow Jones is down 0.8%, but the S&P 500 is up 0.5% and the Nasdaq is 1% higher.
Oil prices jump
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$62.39 a barrel and the Brent crude oil price is up 3% to US$67.57 a barrel. Traders were buying oil in response to a winter storm negatively impacting US output.
Buy Digico shares
Investors should be buying DigiCo Infrastructure REIT (ASX: DGT) shares according to analysts at Bell Potter. According to a note, the broker has upgraded the data centre company's shares to a buy rating with a $3.25 price target. It said: "Stock has been a key underperformer across the REIT sector last 6m (-17% vs. -3% XPJ), but yet there is now more certainty on leasing / FFO in FY26+ post guidance update."
Gold price edges higher
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a relatively subdued on Wednesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$5,087.7 an ounce. The precious metal appears to be in a holding pattern ahead of tonight's US Federal Reserve interest rate meeting.
Buy DroneShield shares
Bell Potter thinks that DroneShield Ltd (ASX: DRO) shares are still in the buy zone following the release of its quarterly update. This morning, the broker retained its buy rating and $5.00 price target on the counter-drone technology company's shares. It said: "We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions."
