5 things to watch on the ASX 200 on Wednesday

Investor sitting in front of multiple screens watching share prices

Investor sitting in front of multiple screens watching share prices

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher. The benchmark index rose 1.4% to 6,523.8 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to rise again on Wednesday following a strong night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.65% higher this morning. On Wall Street, the Dow Jones rose 2.15% and the S&P 500 climbed 2.45%, and the Nasdaq stormed 2.5% higher.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$110.58 a barrel and the Brent crude oil price has risen 0.6% to US$114.83 a barrel. Strong demand and tight supply boosted prices.

PointsBet rated as a buy

The PointsBet Holdings Ltd (ASX: PBH) share price could have plenty of upside according to analysts at Bell Potter. This morning the broker retained its speculative buy rating with a trimmed price target of $5.25. It notes that SIG Sports Investments Corp has made a strategic investment into the company. Its analysts appear pleased and “view the strengthening of the cash position as key given it helps alleviate the major concern with the company.”

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.3% to US$1,834.5 an ounce. Rising bond yields reduced the appeal of the safe haven asset.

Goodman selling overdone

Analysts at Goldman Sachs believe the selldown of the Goodman Group (ASX: GMG) share price has been overdone. This morning the broker reiterated its buy rating and $25.40 price target on the company’s shares. It commented: “GMG and VCX are well-positioned to absorb higher funding costs and should perform well in this environment.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

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 positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/sMidv9x

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s