On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought back from a soft start and recorded a decent gain. The benchmark index rose 0.6% to 8,947.8 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 again
The Australian share market looks set for another good session on Wednesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 72 points or 0.8% higher. In the United States, the Dow Jones rose 1% and the S&P 500 climbed 0.2%, but the Nasdaq fell 0.2% on chip stock weakness.
Oil prices tumble
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another tough session on Wednesday after oil prices tumbled again overnight. According to Bloomberg, the WTI crude oil price is down 4.2% to US$79.14 a barrel and the Brent crude oil price is down 5% to US$83.93 a barrel. Traders have been selling oil prices down this week in response to easing US-Iran tensions.
Buy DroneShield shares
Bell Potter continues to rate DroneShield Ltd (ASX: DRO) shares as a buy. However, due to increasing competition, it has cut its price target on the counter-drone technology company's shares materially to $2.50 (from $4.80). It said: "DRO acted as the primary threat and detection layer for Kansas City during the 2026 FIFA World Cup, however, of the 11 states awarded US$325m for C-UAS protection, this was the only major contract won by DRO, likely representing US$5-10m. This result, which was below our expectations, signals lower levels of share for DRO initially in the US Public Safety market than that held by incumbent Public Safety suppliers, such as Axon Enterprises."
Gold price falls
ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price dropped. According to CNBC, the gold futures price is down 1.2% to US$4,027.10 an ounce. Traders were selling gold ahead of the US Federal Reserve meeting.
Buy Develop Global shares
Now could be the time to buy Develop Global Ltd (ASX: DVP) shares. This morning, Bell Potter responded to the mining and mining services company's quarterly update by retaining its buy rating with a trimmed price target of $6.50. It said: "While the Woodlawn restart has generally exceeded expectations with regard to operational performance, we are disappointed by the higher-than-expected operating cost. DVP offers investors strong leverage to copper, zinc and lithium prices. We view M&A activity as a potential short-term catalyst."
