On Tuesday, the S&P/ASX 200 Index (ASX: XJO) returned to form and charged higher. The benchmark index rose 0.9% to 8,857.1 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 fall
The Australian share market looks set to fall on Wednesday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 58 points or 0.65% lower this morning. In late trade in the United States, the Dow Jones is down 0.8%, the S&P 500 is down 1.35% and the Nasdaq is 2.15% lower.
Oil prices rise
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$63.31 a barrel and the Brent crude oil price is up 1.7% to US$67.42 a barrel. This was driven by a sharp fall in oil inventories.
Rio Tinto shares on watch
Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday. This is because the deadline for the potential Glencore (LSE: GLEN) takeover is rapidly approaching. Rio Tinto has until tomorrow to make an offer, otherwise LSE rules state that it cannot make another play for Glencore for another six months.
Gold price rebounds
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price rebounded overnight. According to CNBC, the gold futures price is up 6.65% to US$4,961.4 an ounce. Traders appear to believe the precious metal was oversold in recent sessions.
Pinnacle results
Pinnacle Investment Management Group Ltd (ASX: PNI) shares will be on watch on Wednesday after the investment company released its half-year results. The company reported an 11% decline in net profit after tax to $67.3 million. In light of this profit decline, Pinnacle was forced to cut its interim dividend by 12% to 29 cents per share. This weaker result reflects lower performance fees from its affiliates.
