On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 1.1% to 8,692.6 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 rise
The Australian share market looks set to rise again on Wednesday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.4% higher. In late trade in the United States, the Dow Jones is down 0.05%, the S&P 500 is down 0.25%, and the Nasdaq is 0.1% lower.
Oil prices sink again
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Wednesday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 8.6% to US$86.63 a barrel and the Brent crude oil price is down 8.4% to US$90.65 a barrel. Optimism over a resumption of supply from the Strait of Hormuz put pressure on prices.
ASX 200 shares going ex-div
Another group of ASX 200 shares are going ex-dividend today and could trade lower. This includes supply chain solutions company Brambles Ltd (ASX: BXB), appliance manufacturer Breville Group Ltd (ASX: BRG), waste management company Cleanaway Waste Management Ltd (ASX: CWY), and mining technology company Imdex Ltd (ASX: IMD). Breville is paying eligible shareholders a 19 cents per share fully franked interim dividend later this month on 27 March.
Gold price jumps
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 jumped overnight. According to CNBC, the gold futures price is up 1.9% to US$5,201.7 an ounce. Easing inflation worries and US dollar weakness were drivers of this gain.
Buy Eagers Automotive shares
Eagers Automotive Ltd (ASX: APE) shares are good value according to analysts at Bell Potter. This morning, the broker has upgraded the automotive retailer's shares to a buy rating with a $28.50 price target. It said: "Our updated TP of $28.50 is >15% premium to the share price so we upgrade our recommendation from Hold to Buy. Yes, we acknowledge Eagers is consumer facing but we see resilience in the both the new and used vehicle market in Australia as well as Canada."
