5 things to watch on the ASX on Wednesday

The shares of Altium Limited (ASX:ALU), Mesoblast Limited (ASX:MSB), and Santos Ltd (ASX:STO) will be on watch on Wednesday. Here's why…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) continued its decline and fell 0.6% to 6,203.6 points due largely to heavy declines in the energy sector.

Will the market be able to bounce back on Wednesday? Here are five things that could have a say in today's trade:

ASX futures pointing higher.

According to the latest SPI futures, the Australian share market is expected to open the day higher by almost 0.4% or 22 points. This follows a positive night of trade on Wall Street which saw the Dow Jones climb 0.2%, the S&P 500 rise 0.4%, and the Nasdaq push 0.6% higher to a record high.

Tech shares jump.

Australian tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could reverse their recent declines on Wednesday after U.S. tech shares surged higher overnight. The Nasdaq reached an all-time high after Federal Reserve Chair Jerome Powell provided a positive outlook on the U.S. economy in his testimony before Congress.

Australian dollar falls.

Jerome Powell's speech before Congress also led to the strengthening of the U.S. dollar and the widening of bond yields. This in turn has hit the Australian dollar and wiped out its recent gains. At the time of writing, the Aussie is down to 73.8 U.S. cents. This could give companies that generate meaningful revenues in the U.S. like Treasury Wine Estates Ltd (ASX: TWE) a lift today.

Oil prices slide.

Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) weighed heavily on the market on Tuesday after oil prices sank lower. Unfortunately for shareholders of energy shares, oil prices have continued to weaken overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$67.61 a barrel and the Brent crude oil price has dropped 0.2% to US$71.67 a barrel.

Mesoblast shares set to rise.

The Mesoblast Limited (ASX: MSB) share price looks set to surge higher on Wednesday after the innovative cell-based medicines developer announced that it has entered into a strategic alliance with China's Tasly Pharmaceutical Group for the development, manufacture, and commercialisation of its MPC-150-IM and MPC-25-IC product candidates. The company's US-listed shares surged 12.5% higher overnight.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. The Motley Fool Australia has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why DroneShield, Hansen, Hub24, and Paladin Energy shares are racing higher today

These shares are having a strong session. Let's find out why.

Read more »

A man in a dark blue suit walks through an airport past floor-to-ceiling windows with a Qantas plane flying in the distance
Travel Shares

Up 16% this year, does Macquarie rate Corporate Travel Management shares a buy, hold or sell?

Does the travel stock have further to fly?

Read more »

Business women working from home with stock market chart showing per cent change on her laptop screen.
Opinions

1 month until ASX earnings season begins: how I'm preparing

It’s almost reporting time. Here’s what I’m looking at.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

A good session is expected for Aussie investors today.

Read more »

a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.
Opinions

Potential buys: 2 compelling ASX shares I like

These ASX shares have an exciting future.

Read more »

Man on a laptop thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors weren't in a good mood this Monday.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Share Market News

How I'm preparing my ASX earnings season watchlist

It's almost that time of year again.

Read more »

group of friends checking facebook on their smartphones
Broker Notes

Macquarie tips 22% return for this ASX telco stock

This telco could be undervalued at current levels according to the broker.

Read more »