5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was in fine form and stormed higher. The benchmark index rose 1.3% to 7,309.9 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 on Wednesday following a relatively positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.5% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.4%, the S&P 500 is up 0.1% and the Nasdaq has dropped 0.3%.

Oil prices charge higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a strong session after a solid night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.1% to US$81.42 a barrel and the Brent crude oil price has risen 1.6% to US$85.53 a barrel. This was driven by hopes that the US Federal Reserve may ease up on its policy tightening after a key U.S. inflation report this week.

South32 shares are a buy

The South32 Ltd (ASX: S32) share price could be great value according to a note out of Goldman Sachs. This morning, its analysts have upgraded the mining giant’s shares to a buy rating with a $4.90 price target. Goldman commented: “We upgrade S32 to Buy (from Neutral) on valuation and FCF and like the company for base metals exposure (~70% of EBITDA).”

Gold price higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.9% to US$2,021.1 an ounce. The precious metal rose on hopes that interest rate hikes could be coming to an end.

Buy Rio Tinto shares

Goldman Sachs is also bullish on Rio Tinto Ltd (ASX: RIO) shares and is recommending them ahead of the miner’s quarterly update. This morning, the broker has reiterated its conviction buy rating and $138.30 price target on its shares. It notes that “Pilbara shipment data [is] indicating a 13% YoY increase in Pilbara iron ore shipments to ~80Mt putting RIO well on track to hit the top end of the 320-335Mt guidance range for 2023.”

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 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Best ASX energy share to buy now: Woodside vs. Santos
• 3 things I wish I knew before I started investing in ASX 200 shares
• Gold bug bites central banks: Is it time to buy Northern Star shares?

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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