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Australian Market Outlook: Key Factors to Watch on Wednesday

Published 31/07/2024, 08:12 pm
© Reuters.  Australian Market Outlook: Key Factors to Watch on Wednesday
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After a decline on Tuesday, the Australian share market is poised for a potentially better session today. The ASX 200 Index (ASX: XJO) fell by 0.45% to 7,953.2 points, but indications suggest a possible rebound. Here’s what investors should be aware of as the market opens:

ASX 200 Expected to Rise The Australian share market is anticipated to open higher on Wednesday, despite a mixed performance in the United States. Current SPI futures suggest that the ASX 200 will rise by 22 points, or 0.3%. On Wall Street, the Dow Jones Industrial Average gained 0.5%, while the S&P 500 dropped 0.5% and the Nasdaq Composite fell 1.3%.

Oil Prices Decline Energy stocks on the ASX 200, such as Beach Energy Ltd (ASX: ASX:BPT) and Woodside Energy Group Ltd (ASX: WDS), may face challenges today as oil prices have fallen. Recent data from Bloomberg shows that the WTI crude oil price has decreased by 1% to US$75.05 per barrel, and Brent crude is also down 1% to US$78.95 per barrel. These prices have reached their lowest levels since early June, primarily due to concerns about demand.

Rio Tinto’s Half-Year Results Rio Tinto Ltd (ASX: ASX:RIO) is expected to be a focal point as the mining company announces its half-year results. Analysts forecast that Rio Tinto will report underlying EBITDA of US$12.4 billion, slightly below the consensus estimate of US$12.5 billion. The company is also anticipated to declare underlying earnings of US$5.8 billion and an interim dividend of US$1.79 per share.

Gold Price Surge Shares of ASX 200 gold companies such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: ASX:NST) may perform well today following a significant increase in the gold price. The spot gold price has risen by 1.2% to US$2,406.6 per ounce, reflecting optimism among traders that the US Federal Reserve may soon announce plans for interest rate cuts.

Woolworths Group Developments Woolworths Group Ltd (ASX: WOW) saw its share price fall on Tuesday after the company announced the departure of its Australian supermarkets CEO. Despite this, the outlook for Woolworths remains positive, with expectations that the talent pool for supermarket retail operations is strong. Analysts continue to view the shares as undervalued and anticipate that the company will find a suitable replacement for the CEO position.

The Australian market shows signs of potential recovery today, with key developments across various sectors influencing the outlook. Investors will be keeping a close eye on movements in energy, mining, gold, and retail sectors as the day progresses.

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