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ASX 200 Preview: Key Market Movements to Watch

Published 21/08/2024, 09:24 pm
© Reuters.  ASX 200 Preview: Key Market Movements to Watch
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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) extended its positive momentum, gaining 0.2% to reach 7,997.7 points. As the market heads into Wednesday, several factors are set to influence its direction. Here are five key aspects to monitor:

Expected Dip for the ASX 200

The Australian share market may see a pause in its recent upward trend on Wednesday. The latest SPI futures suggest the ASX 200 could open 24 points, or 0.3%, lower. This potential decline follows a mixed session on Wall Street, where the Dow Jones decreased by 0.15%, the S&P 500 fell by 0.2%, and the Nasdaq slipped by 0.3%.

Oil Prices Decline

Energy stocks within the ASX 200, such as Beach Energy Ltd (ASX: ASX:BPT) and Woodside Energy Group Ltd (ASX: WDS), may face a challenging day following another drop in oil prices. Bloomberg reports that the WTI crude oil price has fallen by 0.75% to US$73.82 per barrel, while the Brent crude oil price is down by 0.6% to US$77.22 per barrel. The decline in oil prices is attributed to weaker-than-expected demand.

Ex-Dividend for Commonwealth Bank

Commonwealth Bank of Australia (ASX: CBA) shares are anticipated to trade lower on Wednesday as they go ex-dividend. This means that the bank's shares will begin trading without the entitlement to the upcoming fully franked final dividend of $2.50 per share. Eligible shareholders will receive this dividend on September 27. Additionally, shares of AMP Ltd (ASX: AMP) and ASX Ltd (ASX: ASX) will also be trading ex-dividend today.

Record High for Gold Prices

Gold shares within the ASX 200, such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: ASX:NST), could experience positive movement after the gold price reached a new record high overnight. CNBC reports that the spot gold price has increased by 0.45% to US$2,553.10 per ounce. This surge is driven by a weaker US dollar and speculation about potential interest rate cuts.

WiseTech Global's Results

Investors will be paying close attention to WiseTech Global Ltd (ASX: WTC) as the logistics software provider releases its full-year results. The company has projected revenue between $1,040 million and $1,095 million, with EBITDA expected to be between $455 million and $490 million. This reflects a year-on-year growth of 27% to 34% in revenue and 18% to 27% in EBITDA. Analysts anticipate that WiseTech will exceed its earnings guidance for FY 2024, with revenue forecasted at $1,063 million and EBITDA at $491 million.

As these factors unfold, they will likely shape the movements of the ASX 200 and its constituent stocks throughout the trading day.

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