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The S&P/ASX 200 Index (ASX: XJO) had a volatile day on Tuesday, but ultimately closed it with a small gain. The reference index rose by 0.1% to 7,029.8 points.
Will the market be able to build on it on Wednesday? Here are five things to watch:
The ASX 200 is expected to fall
The Australian share market looks set for a tough day on Wednesday after a poor night of trading in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 40 points or 0.6% lower this morning. On Wall Street, the Dow Jones fell 0.2%, the S&P 500 fell 0.4% and the Nasdaq sank 1%.
Oil prices soften
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be in for a poor day after oil prices softened overnight. WTI crude fell 0.2% to $90.52 a barrel and Brent crude fell 0.35% to $96.30 a barrel, according to Bloomberg. This was driven by optimism that Iran could increase its crude oil exports.
Results of the CBA
The Commonwealth Bank of Australia (ASX: CBA) share price will be one to watch this morning when the banking giant releases its annual results. According to a Goldman Sachs note, following the bank’s one-time update earlier this week, its analysts are now forecasting cash earnings of $9.509 billion for fiscal 2022. This will increase the 9.9% compared to the previous corresponding period. The broker expects this to support a fully franked dividend of 380 cents per share for the full year.
The price of gold rises
Gold miners Evolution Mining Ltd (ASX: EVN ) and Northern Star Resources Ltd (ASX: NST ) could have a decent day after gold prices traded higher overnight. Spot gold rose 0.3% to US$1,810.90 an ounce, according to CNBC. Traders were buying gold after the US dollar softened.
Share results and guidance with computers
The Computershare Limited (ASX: CPU) share price could be on the move on Wednesday after the share transfer company released its full year results after yesterday’s close. For the 12 months ended June 30, Computershare reported a 12.2% increase in operating income to $2.6 billion and a 10.6% increase in earnings per share (EPS) of management up to 58.03 cents. Looking ahead, the company is targeting a massive 55% management EPS growth in FY2023.