5 things to watch on the ASX 200 on Wednesday

The ASX 200 looks set for another great day on Wednesday.

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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:

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."

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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