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On Tuesday, the S & P / ASX 200 Index (ASX: XJO) returned most of its intraday gains to end the day a fraction higher. The benchmark index rose 4.1 points to 6,606.3 points.
Will the market be able to build it on Wednesday? Here are five things to see:
The ASX 200 is expected to go down
The Australian stock market looks set to fall on Wednesday after a bad night of trading in the US. According to the latest SPI futures, the ASX 200 is expected to open 3 points lower this morning. On Wall Street, the Dow Jones fell 0.6%, the S&P 500 fell 0.9% and the Nasdaq fell 0.95%. Investors were selling shares before a key inflation report was released in the United States.
Oil prices are falling
Energy producers like Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a hard day after oil prices fall overnight. According to Bloomberg, the price of WTI crude has dropped 8.1% to $ 95.64 a barrel and the price of Brent crude has plunged 7.5% to $ 99.10 a barrel. Concerns about demand weighed heavily on prices.
IDP Education qualified as purchase
According to Goldman Sachs analysts, the stock price of IDP Education Ltd (ASX: IEL) has great bullish potential. This morning, the broker has reiterated its purchase rating with a target price of $ 35.50. He commented: “We see this as a story of structural growth as international student markets open up. India is a key driver of this trend.”
The price of gold falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough day after the price of gold goes down again overnight. According to CNBC, the price of spot gold has dropped 0.5% to $ 1,723.2 an ounce. Imminent rate hikes are weighing on the safe haven asset.
South32 sells copyright
The share price of South32 Ltd (ASX: S32) will remain the same today after the miner announced the sale of four non-core metal copyrights to Anglo Pacific Group for US $ 185 million. That includes $ 103 million in cash and $ 82 million in scrip. The latter will leave South32 with a ~ 16.9% stake in Anglo Pacific. These copyrights come from third party interests in copper and nickel projects in Australia, the US and Chile.