5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.35% to 8,614.3 points.

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

ASX 200 set to rise

The Australian share market looks set to rise again on Wednesday following a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is up 0.3% and the Nasdaq is 0.5% higher.

Oil prices rise

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Wednesday after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$95.85 a barrel and the Brent crude oil price is up 3% to US$103.26 a barrel. This was driven by concerns over the lack of support for US plans to escort tankers through the Strait of Hormuz.

Buy Clarity shares

The team at Bell Potter thinks Clarity Pharmaceuticals Ltd (ASX: CU6) shares are good value at current levels. This morning, the broker has retained its speculative buy rating and $6.40 price target on the radiopharmaceuticals company’s shares. It said: “The stage is now set for a readout from the approval study for 64Cu-SAR-bisPSMA (AMPLIFY) which has now ceased accepting new patient consents and is practically fully enrolled (n=220). The Co-PSMA data along with data from COBRA and anticipated findings from AMPLIFY will form the basis of submission of a new drug application to be submitted to the FDA.”

Gold price flat

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price traded flat overnight. According to CNBC, the gold futures price is trading at US$5,003.8 an ounce. Traders appear undecided where gold is going next and are waiting for the upcoming US Federal Reserve meeting.

New Hope shares upgraded

New Hope Corporation Ltd (ASX: NHC) shares have been upgraded by analysts at Bell Potter. This morning, the broker has taken its sell rating off the coal miner’s shares after lifting them to a hold rating with a $4.50 price target. It said: “We upgrade to a Hold recommendation and apply a 5% premium to our sum of the parts valuation with energy security concerns exacerbated by recent geopolitical issues. NHC’s low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting shareholder returns. Beyond ramp-up of New Acland Stage 3, we see a limited organic production growth pipeline and believe NHC may participate in industry consolidation.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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• Why New Hope, Pepper Money, Pro Medicus, and Reece shares are falling today

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.