On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ran out of steam and dropped into the red. The benchmark index fell 0.2% to 7,999.3 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rebound
It looks set to be a better day for the Australian share market on Wednesday thanks to a positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.65% higher. On Wall Street, the Dow Jones was up 1.8%, the S&P 500 rose 0.65% and the Nasdaq climbed 0.2%. The Dow Jones had its best session in over a year.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.25% to US$80.88 a barrel and the Brent crude oil price is down 1.2% to US$83.84 a barrel. Chinese demand concerns put pressure on oil prices.
BHP Q4 update
BHP Group Ltd (ASX: BHP) shares will be on watch today when the mining giant releases its fourth quarter update. The market is expecting the Big Australian to report iron ore shipments of 74.9Mt for the three months with a realised iron ore price of US$101 per tonne. The consensus estimate for copper production is 470kt with a realised price of US$4.05 per tonne. And nickel production is expected to come in at 4.9Mt for the quarter.
Gold price surges to record high
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session after the gold price surged to a record high overnight. According to CNBC, the spot gold price is up 1.7% to US$2,470.7 an ounce. This has been driven by hopes that the US Federal Reserve will cut rates soon.
Buy Rio Tinto shares
The Rio Tinto Ltd (ASX: RIO) share price could be good value according to analysts at Goldman Sachs. In response to the mining giant’s quarterly update, the broker has retained its buy rating with a trimmed price target of $136.10. It said: “Compelling relative valuation: trading at c. ~0.8x NAV (A$144.0/sh) vs. peers (BHP ~0.9x NAV and FMG ~1.3x NAV) and c. ~5.5x NTM EBITDA at GSe base case, below the historical average of ~6-7x.”
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
Should you invest $1,000 in Bhp Group right now?
Before you buy Bhp Group shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
See The 5 Stocks
*Returns as of 10 July 2024
More reading
- Here are the top 10 ASX 200 shares today
- No savings? I’d use the Warren Buffett method to earn lifelong passive income with ASX shares
- Why are BHP and other ASX 200 mining shares getting hammered on Tuesday?
- Why Champion Iron, Core Lithium, Encounter Resources, and Rio Tinto shares are dropping
- Rio Tinto shares fall on soft second quarter update
Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.
Leave a Reply