On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and charged higher. The benchmark index rose 0.55% to 7,565.2 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to storm higher
The Australian share market looks set to have a great day on Wednesday following a strong night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% higher this morning. On Wall Street, the Dow Jones rose 1.3%, the S&P 500 climbed 1.5%, and the Nasdaq stormed 2.05%.
Oil prices sink
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices sank. According to Bloomberg, the WTI crude oil price is down 5.2% to US$102.52 a barrel and the Brent crude oil price has fallen 5.1% to US$107.40 a barrel. Traders were selling oil after the IMF slashed its global growth forecast.
Ramsay Health Care $20 billion takeover speculation
The Ramsay Health Care Limited (ASX: RHC) share price could be one to watch today amid rumours the private hospital operator has received a takeover approach. Goldman Sachs notes that “RHC has received an indicative, non-binding offer from KKR, valuing the company at >$20bn.” This compares to its $12 billion market cap and $15 billion enterprise value.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.9% to US$1,948.8 an ounce. A strengthening US dollar weighed heavily on the precious metal.
Life360 remains a buy
The Life360 Inc (ASX: 360) share price could almost double according to analysts at Bell Potter. This morning the broker retained its buy rating and $10.00 price target on the location technology company’s shares. Ahead of its first quarter update, the broker said: “We expect another quarter of at least 50% y-o-y growth in AMR despite Q1 traditionally not being a strong quarter.”
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
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More reading
- Here are the top 10 ASX shares today
- What’s boosting the Northern Star share price on Tuesday?
- ASX 200 midday update: AMP asset sale talks, Syrah rockets
- What sort of dividend yield do Santos shares currently trade on?
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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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