On Tuesday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index pushed a further 1.9% higher to 5,488.1 points.
Will there be more of the same on Wednesday? Here are a few things to watch:
ASX 200 expected to rise.
The S&P/ASX 200 index is expected to push higher again on Wednesday. According to the latest SPI futures, the benchmark index is expected to open 11 points or 0.2% higher. This follows a positive night of trade on Wall Street which has seen the Dow Jones rise 2.4%, the S&P 500 surge 3.1% higher, and the Nasdaq jump 4% higher.
Oil prices crash lower.
Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices crashed lower. According to Bloomberg, the WTI crude oil price fell 7.3% to US$20.77 a barrel and the Brent crude oil price has fallen 5.3% to US$30.05 a barrel. Concerns over weakening demand have offset OPEC's significant production cuts.
Gold price edges lower.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price edged lower. According to CNBC, the spot gold price is down 0.35% to US$1,756.10 an ounce. This appears to have been driven by profit taking after the precious metal rallied to a new seven-year high.
Afterpay downgraded to neutral.
The Afterpay Ltd (ASX: APT) share price will be on watch again today after Goldman Sachs downgraded its shares to a neutral rating. Although Afterpay delivered a "solid" third quarter update, its shares have now smashed through its target price. Goldman has put a neutral rating and $25.75 price target on the payment company's shares.
QBE expected to return.
The QBE Insurance Group Ltd (ASX: QBE) share price could be on the move on Wednesday. The insurance giant is expected to return to trade this morning after completing its institutional placement. Combined with its share purchase plan, QBE is aiming to raise up to US$825 million. These funds will be raised at A$8.25 per new share, which is a 9.4% discount to its last close price.
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer. One is a diversified conglomerate trading 40% off it's all time high, all while offering a fully franked dividend yield of over 3%… Another is a former stock market darling that is one of Australia's most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
Returns as of 7/4/2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.
