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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher. The benchmark index rose 1.4% to 6,523.8 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market looks set to rise again on Wednesday following a strong night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.65% higher this morning. On Wall Street, the Dow Jones rose 2.15% and the S&P 500 climbed 2.45%, and the Nasdaq stormed 2.5% higher.
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$110.58 a barrel and the Brent crude oil price has risen 0.6% to US$114.83 a barrel. Strong demand and tight supply boosted prices.
PointsBet rated as a buy
Tea PointsBet Holdings Ltd (ASX: PBH) share price could have plenty of upside according to analysts at Bell Potter. This morning the broker retained its speculative buy rating with a trimmed price target of $5.25. It notes that SIG Sports Investments Corp has made a strategic investment into the company. Its analysts appear pleased and “view the strengthening of the cash position as key given it helps alleviate the major concern with the company.”
Gold price drops
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 0.3% to US$1,834.5 an ounce. Rising bond yields reduced the appeal of the safe haven asset.
Goodman selling overdone
Analysts at Goldman Sachs believe the selldown of the Goodman Group (ASX: GMG) share price has been overdone. This morning the broker reiterated its buy rating and $25.40 price target on the company’s shares. It commented: “GMG and VCX are well-positioned to absorb higher funding costs and should perform well in this environment.”