On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 7,112.5points.
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 for a very strong day on Wednesday following a stellar night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.95% higher this morning. On Wall Street, the Dow Jones rose 1.35%, the S&P 500 climbed 2%, and the Nasdaq stormed 2.75% higher.
Pendal rated as a buy
The Pendal Group Ltd (ASX: PDL) share price could be good value according to analysts at Bell Potter. According to a note, the broker has retained its buy rating with an improved price target of $6.90. The broker believes Pendal’s half-year result and its recent takeover approach demonstrate how “undervalued asset managers have become.”
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 pulled back. According to Bloomberg, the WTI crude oil price is down 1.9% to US$112.05 a barrel and the Brent crude oil price has fallen 2.5% to US$111.36 a barrel. Hopes that additional Venezuelan supply could hit the market soon has put pressure on prices.
Champion Iron acquisition
The Champion Iron Ltd (ASX: CIA) share price will be on watch today after the iron ore miner announced a new acquisition. The company has signed a deal to acquire the Pointe Noire Iron Ore Pelletizing Facility located in Sept-Iles, Québec. In addition, Champion is in talks with a major international steelmaker to complete a feasibility study to evaluate the re-commissioning of the Pellet Plant and produce Direct Reduction Grade Pellets.
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,813.2 an ounce. Strong US retail sales boosted the US dollar and weighed on gold.
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.
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