5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run with a solid gain. The benchmark index rose 0.55% to 8,735.7 points

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

ASX 200 to edge lower

The Australian share market is expected to edge lower on Wednesday despite a strong session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower. In the United States, the Dow Jones rose 0.5%, the S&P 500 climbed 0.6%, and the Nasdaq pushed 0.45% higher.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session on Wednesday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.4% to US$89.80 a barrel and the Brent crude oil price is up 0.65% to US$100.96 a barrel. Traders were bidding oil higher in response to supply risks.

Buy Deterra shares

The team at Morgans thinks Deterra Royalties Ltd (ASX: DRR) shares could be good value. The broker has retained its buy rating on the mining royalties company’s shares with a trimmed price target of $4.75. It said: “Deterra has announced the acquisition of a 1.75% NSR royalty on ~84% of Ivanhoe Electric’s Santa Cruz copper project for US$74.15m cash. As part of the deal reduced to 1.68% NSR for first 6 years of production, and 1.57% thereafter, with a current 24-year mine life. >We value the Santa Cruz royalty at risked A$110m, or A$0.21/share, and expect it to add A$17-21mpa to EBITDA by FY30F (~7% earnings accretive). A formidable inflation hedge with upside leverage to metal prices, we maintain a BUY rating with a A$4.75 Target Price (was A$4.85).”

Gold price rises

ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price pushed higher. According to CNBC, the gold futures price is up 0.8% to US$4,191.5 an ounce. This was driven by a weaker US dollar and softening Treasury yields.

Dicker Data shares on watch

Dicker Data Ltd (ASX: DDR) shares will be on watch on Wednesday if they return from their trading halt. The computer hardware and software distributor requested a trading halt as it prepared to announce a binding agreement to acquire 100% of Sektor Group for around A$111.8 million. Executive Chair and Managing Director, Fiona Brown, said: “Sektor expands our reach into attractive adjacent categories including point-of-sale and enterprise mobility as well as further strengthening our physical security and cybersecurity offering. Importantly, Sektor also provides Dicker Data with an established operational footprint in Thailand and Malaysia, accelerating our regional expansion strategy.”

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

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• 5 things to watch on the ASX 200 on Monday

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 positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.