5 things to watch on the ASX 200 on Wednesday

Smiling man with phone in wheelchair watching stocks and trends on computer

Smiling man with phone in wheelchair watching stocks and trends on computer

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.5% to 7,258.4 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday despite it being a reasonably positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 12 points or 0.2% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, but the S&P 500 is up 0.3% and the Nasdaq is 0.7% higher.

Oil prices charge higher

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$77.16 a barrel and the Brent crude oil price has risen 1.8% to US$83.96 a barrel. Traders were bidding oil prices higher on Chinese growth hopes.

Harvey Norman shares rated as a buy

The Harvey Norman Holdings Limited (ASX: HVN) share price was sold off on Tuesday following the release of a weaker than expected half-year result from the retail giant. Goldman Sachs believes this has left its shares trading at a very attractive level and has retained its buy rating with a trimmed price target of $4.70. Goldman’s estimates suggest potential upside of 22% for its shares and a 9.3% dividend yield in FY 2023.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.7% to US$1,837.2 an ounce. Despite this, the precious metal is on course to have its worst month in almost two years.

NextDC named as a buy

The NextDC Ltd (ASX: NXT) share price could have major upside potential according to the team at Morgans. This morning, the broker has reiterated its add rating on the data centre operator’s shares with a trimmed price target of $13.00. It was pleased with NextDC’s half-year results, commenting: “NXT’s 1H23 result was slightly better than expectations with underlying EBITDA up 15% YoY and 6% ahead of our forecasts.”

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 positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. 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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