On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day with the smallest of gains. The benchmark index rose a fraction to 8,783.9 points
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 to fall
The Australian share market is expected to fall on Wednesday following a poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.35% lower. In the United States, the Dow Jones fell 0.35%, the S&P 500 dropped slightly, and the Nasdaq was down 0.15%.
Oil prices mixed
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1% to US$94.69 a barrel and the Brent crude oil price is down 0.45% to US$106.16 a barrel. Traders are assessing the impacts of the Russian diesel supply deal and the Saudi-Houthi conflict.
Buy PLS shares
The team at Bell Potter has upgraded PLS Group Ltd (ASX: PLS) shares this morning following a period of weakness. Although the broker has reduced its lithium price forecasts, it remains positive and has upgraded PLS shares to a buy rating with a trimmed price target of $4.40 (from $5.20). It said: “We upgrade to a Buy recommendation on recent share price weakness. At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.”
Gold price softens
ASX 200 gold shares Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.1% to US$4,187.2 an ounce. Traders were selling gold ahead of the release of US inflation data.
Rio Tinto update
Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday when the mining giant releases its quarterly update. Investors will no doubt be looking to see if Rio Tinto remains on course to achieve its guidance in 2026. It is targeting copper production of 800kt to 870kt and iron ore sales of 343Mt to 366Mt. Costs are expected to be US$23.5 to US$25 per tonne for iron ore and 30 US cents to 50 US cents per pound for copper. Elsewhere, Commonwealth Bank of Australia (ASX: CBA) is holding its annual general meeting today and will be worth watching.
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
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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.