On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.5% to 7,006 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to rise again on Wednesday following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher this morning. In late trade in the United States, the Dow Jones is up 0.2%, the S&P 500 is up 0.1%, and the Nasdaq is down 0.1%.
Virgin Money UK update
The Virgin Money UK (ASX: VUK) share price will be on watch today after it released its first quarter update. According to the release, the UK based bank revealed that its net interest margin (NIM) improved from 170bps to 177bps thanks to higher hedge contributions, lower cost of funds, and a higher yielding lending mix. Management now expects its full year NIM to be ~175bps.
Oil prices soften
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a subdued day after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.1% to US$88.03 a barrel and the Brent crude oil price has fallen 0.2% to US$89.06 a barrel. Traders appear concerned that OPEC could increase production to tame prices.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.3% to US$1,801.40 an ounce. The gold price pushed higher after the US dollar softened.
CBA rated as a sell
The Commonwealth Bank of Australia (ASX: CBA) share price could be a sell according to analysts at Goldman Sachs. This morning its analysts have retained their sell rating and $82.57 price target on its shares. The broker believes CBA's modest growth prospects don't justify the multiples its shares trade on.
