On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and record a strong gain. The benchmark index rose 0.8% to 7,006.7 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to jump
The Australian share market looks set for another positive session on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 83 points or 1.2% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.35%, the S&P 500 has risen 1.8%, and the Nasdaq is 2.1% higher. A lower-than-expected US inflation reading boosted sentiment.
Oil prices rise
It could be a positive session for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.4% to US$78.56 a barrel and the Brent crude oil price has risen 0.35% to US$82.80 a barrel. Traders were buying oil after the IEA lifted its demand growth forecast.
CSL shares upgraded
CSL Limited (ASX: CSL) shares could be great value according to Goldman Sachs. This morning, the broker has upgraded the biotherapeutics giant's shares to a buy rating with a $309 price target. This implies a 22% upside from current levels. It said: "CSL is now entering a period of more capital-efficient growth, driving a sharp improvement in our ROIC forecast (+460bps by FY27E)."
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price climbed overnight. According to CNBC, the spot gold price is up 0.85% to US$1,966.7 an ounce. Falling bond yields boosted the precious metal.
CBA rated as a sell
The Commonwealth Bank of Australia (ASX: CBA) share price remains overvalued according to analysts at Goldman Sachs. In response to the bank's quarterly update, the broker has retained its sell rating and trimmed its price target to $81.64. Its analysts don't think CBA "justifies the extent of the valuation premium to peers, and note the 58% 12-month forward PPOP premium it is currently trading on versus peers (ex-dividend adjusted), compared to the 28% 15-year average."
