5 things to watch on the ASX 200 on Wednesday

Business woman watching stocks and trends while thinking

Business woman watching stocks and trends while thinking

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.25% to 6,807.3 points.

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

ASX 200 expected to tumble

The Australian share market looks set to have a difficult day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.15%, and the Nasdaq sank 1.9%.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$94.88 a barrel and the Brent crude oil price has fallen 1.1% to US$104.05 a barrel. Demand concerns weighed on prices.

Rio Tinto half-year results

The Rio Tinto Limited (ASX: RIO) share price will be on watch this morning when the mining giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting revenue of US$29,655 million and underlying EBITDA of US$15,671 million. The broker has also pencilled in an ordinary dividend of US$3.18 per share and a special dividend of US$0.50 per share.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,715.80 an ounce. Traders were selling gold ahead of the US Federal Reserve meeting this week.

Iluka demerger

The Iluka Resources Limited (ASX: ILU) share price could drop into the red today when the mineral sands company demerges its Sierra Rutile business. Following a review, the Iluka board determined that a separation of Sierra Rutile by way of demerger is the optimal pathway for the business to achieve its growth objectives, reach its potential, and maximise value for Iluka shareholders.

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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