5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought hard for a small gain. The benchmark index ended the day 0.1% higher at 7,663 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise again on Wednesday despite a mixed session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher. In late trade on Wall Street, the Dow Jones is down 0.4%, the S&P 500 is flat, and the Nasdaq is 0.2% higher.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$78.80 a barrel and the Brent crude oil price is up 1.2% to US$83.52 a barrel. Traders are anticipating production cuts from OPEC.

Flight Centre results

The Flight Centre Travel Group Ltd (ASX: FLT) share price will be on watch today when the travel agent releases its half-year results. Goldman Sachs expects sales growth of 28.5% to $1,288.1 million and earnings before interest and tax (EBIT) growth of 344.9% over the prior corresponding period. This is modestly higher than the market consensus estimate.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a reasonably positive session on Wednesday after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$2,042.3 an ounce. Traders appear to be expecting upcoming US inflation data to support rate cuts.

Coles rated as a sell

Coles Group Ltd (ASX: COL) shares are overvalued according to analysts at Goldman Sachs. This morning, in response to the supermarket operator’s half-year results, the broker has retained its sell rating with an improved price target of $15.10. This implies 10% downside from current levels. It said: “FY24-26e EBIT +2% to 6% on positive cost management though still below Consensus on EBIT with relative valuation gap closed.”

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’s everything you need to know about the Woodside dividend
• Why Coles, G8 Education, Helia, and Reece shares are storming higher
• Everything you need to know about the new Coles dividend
• Woodside share price rises despite 74% decline in FY23 profits

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 positions in and has recommended Coles Group. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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