On Tuesday the S&P/ASX 200 Index (ASX: XJO) bounced back strongly and recorded an impressive gain. The benchmark index rose 1.1% to 6,588.5 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to storm higher.
The Australian share market looks set to storm higher on Wednesday after a positive night on global markets. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.75% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.95%, the S&P 500 is up 1.45%, and the Nasdaq has jumped 1.6%.
Tech shares on watch.
It looks set to be a good day for tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Wednesday. They have a tendency to follow the lead of their U.S. counterparts, which are surging higher on the tech-focused Nasdaq index at the time of writing.
Gold price jumps.
It could also be a very good day for gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). This follows an exceptionally strong night of trade for the precious metal. According to CNBC, the spot gold price is up 2.1% to US$1,818.50 an ounce. This was driven by U.S. dollar weakness caused by the announcement of a COVID stimulus package.
Oil prices sink lower.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a tough day after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 1.9% to US$44.48 a barrel and the Brent crude oil price has dropped 1.1% to US$47.35 a barrel. News that OPEC is delaying production cut talks is weighing on prices.
Westpac rated as a buy.
Goldman Sachs has retained its buy rating on the Westpac Banking Corp (ASX: WBC) share price following its update on APRA’s investigation into its risk governance. The broker notes that its price target of $20.34 takes into account regulatory uncertainty, hence no changes are being made today. Goldman is also forecasting a 4.8% dividend yield in FY 2021.
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More reading
- ASX 200 rises on Tuesday
- Westpac (ASX:WBC) share price gaining ground despite slap by regulator
- CBA (ASX:CBA) and the ASX banks just had an amazing month
- Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
- Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post 5 things to watch on the ASX 200 on Wednesday appeared first on Motley Fool Australia.
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