On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a great day and stormed higher. The benchmark index rose 0.7% to 7,464.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
It looks set to be another good day for the Australian share market on Wednesday following a positive night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.8%, the S&P 500 is up 1.2%, and the Nasdaq is up a sizeable 1.9%.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped again. According to Bloomberg, the WTI crude oil price is down 1.5% to US$104.37 a barrel and the Brent crude oil price has fallen 1.9% to US$110.28 a barrel. Promising signals from Russia-Ukraine peace talks weighed on prices.
Federal Budget
Last night the Federal Government delivered its pre-election budget with a focus on two key themes: the cost of living and national security. Some ASX 200 shares that look set to benefit include JB Hi-Fi Limited (ASX: JBH) and Xero Limited (ASX: XRO) from a “go digital” incentive and toll road operator Transurban Group (ASX: TCL) from a 22 cents per litre fuel excise reduction for six months.
Gold price down again
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price continued to fall. According to CNBC, the spot gold price is down 1.1% to US$1,921.5 an ounce. This has been driven by Russia-Ukraine peace talks reducing safe haven asset demand.
Dividends being paid
It’s a very big day for dividend payments on Wednesday with a number of popular ASX 200 dividend shares rewarding their shareholders today. This includes energy company AGL Energy Limited (ASX: AGL), banking giant Commonwealth Bank of Australia (ASX: CBA), iron ore miner Fortescue Metals Group Limited (ASX: FMG), and conglomerate Wesfarmers Ltd (ASX: WES).
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
- Buy or sell? ASX experts rate the CBA share price for April
- Leading brokers name 3 ASX shares to sell today
- Global poster child? Why this fundie is bullish on the Santos share price
- These 3 ASX 200 shares are topping the volume charts this Tuesday
- Why Beach, Melbana, St Barbara, and Tietto shares are dropping
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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Wesfarmers Limited and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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