On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and recorded a strong gain. The benchmark index rose 0.85% to 7,355 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
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ASX 200 expected to edge higher
The Australian share market looks set to edge higher on Wednesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is up 1.45%, the S&P 500 is up 1.55%, and the Nasdaq is trading 2.1% higher.
Chalice demerger
The Chalice Mining Ltd (ASX: CHN) share price is likely to trade notably lower on Wednesday. This morning the company's gold exploration business Falcon Metals Ltd (ASX: FAL) will begin trading separately on the ASX boards following the completion of its demerger. Eligible Chalice shareholders received 1 Falcon share for approximately every 3.0341 Chalice shares.
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a great day after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 3.7% to US$71.17 a barrel and the Brent crude oil price has risen 3.5% to US$74.03 a barrel. Oil prices rebounded after investors' appetite for risk improved.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price dropped. According to CNBC, the spot gold price is down 0.35% to US$1,788.4 an ounce. The gold price fell as investors rotated to risk assets.
Dividends being paid
More dividends are being paid to investors on Wednesday. KFC-focused quick service restaurant operator Collins Foods Ltd (ASX: CKF) and commercial explosives company Orica Ltd (ASX: ORI) are rewarding their shareholders with 12 cents per share and 16.5 cents per share dividends, respectively, later today.
