Following a challenging Monday, the S&P/ASX 200 Index (ASX: XJO) made a modest recovery on Tuesday, gaining 0.4% to reach 7,680.6 points. As the market looks ahead to Wednesday, several factors could influence its trajectory. Here’s what to watch for:
1. ASX 200 Expected to Open Lower
Despite a positive session in the United States, the Australian share market is anticipated to open lower on Wednesday. According to the latest SPI futures, the ASX 200 is expected to decline by 12 points, or 0.15%. On Wall Street, major indices saw gains, with the Dow Jones increasing by 0.75%, the S&P 500 rising by 1%, and the Nasdaq also up by 1%.
2. Rise in Oil Prices
Energy stocks on the ASX 200, such as Beach Energy Ltd (ASX: ASX:BPT) and Woodside Energy Group Ltd (ASX: WDS), might experience a boost following a rise in oil prices. Bloomberg reports that the WTI crude oil price has climbed 0.3% to $73.18 per barrel, while the Brent crude oil price has increased by 0.2% to $76.45 per barrel. Tensions in the Middle East have contributed to this rise in oil prices.
3. Pro Medicus Ltd (ASX: PME) Noted for Potential
Pro Medicus Ltd has faced challenges recently, but it is now being recognized as a potential opportunity. The company’s shares have been affected by the broader market conditions, but its strong position for FY25, bolstered by significant contracts and growing new contract wins, suggests potential upside. The current target price for Pro Medicus shares is $148.00, indicating a potential increase of 20% from current levels.
4. Decline in Gold Prices
Gold-related stocks such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: ASX:NST) could see a quieter day after the gold price fell overnight. CNBC reports that the spot gold price is down 0.6% to $2,429.70 per ounce. A stronger US dollar has exerted pressure on gold, impacting the performance of gold mining companies.
5. Telstra Group Ltd (ASX: TLS) in Focus
Telstra Group Ltd’s shares are generating interest ahead of the company’s full-year results release. Analysts anticipate solid results within the recently reaffirmed guidance ranges, driven by growth in Mobile and InfraCo segments. There is also speculation that Telstra may narrow or upgrade its FY25 EBITDA guidance range to A$8.5-8.7 billion from the previous A$8.4-8.7 billion. The target price for Telstra shares is currently set at $4.30.
These elements will be pivotal in shaping the performance of the ASX 200 on Wednesday. Monitoring these factors can provide valuable insights into potential market movements and investment opportunities.