On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and finished in the red. The benchmark index fell 0.3% to 7,128.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to push higher on Wednesday despite a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher this morning. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 fell 0.8%, and the Nasdaq tumbled 2.35%.
BHP demerger
The BHP Group Ltd (ASX: BHP) share price is likely to sink deep into the red on Wednesday. This is because the Big Australian’s shares are trading ex-dividend for its in-specie dividend this morning. This in-specie dividend will see eligible shareholders receive one new Woodside Energy Group Ltd (ASX: WPD) share for every 5.534 BHP shares they own. These shares have a total market value of $26.5 billion at current prices, so BHP may see its market capitalisation fall in line with this today.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued day after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.5% to US$109.78 a barrel and the Brent crude oil price has fallen slightly to US$113.40 a barrel. US oil prices softened amid speculation that President Biden could ban oil exports.
Pilbara Minerals’ BMX auction
The Pilbara Minerals Ltd (ASX: PLS) share price will be in focus today following the release of the results of the fifth Battery Material Exchange (BMX) auction. A cargo of 5,000 tonnes at a target grade of ~5.5% lithia was presented for sale on the platform and received a winning bid of US$5,955 per dry metric tonne (dmt). Management advised that strong interest was received in both participation and bidding by a broad range of buyers. The winning bid is an improvement on the fourth BMX auction which reported a winning bid of US$5,650 dmt.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.95% to US$1,865.4 an ounce. A pullback in the US dollar boosted the gold price.
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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