The S&P/ASX 200 Index (ASX: XJO) managed to edge higher on Tuesday, closing with a modest gain of 0.1% at 8,677.2 points. As investors look towards Wednesday, several factors could shape the market’s trajectory. Here are five key elements to watch on the ASX 200 today.
ASX 200 Poised for a Positive Start
The Australian share market appears set to open higher on Wednesday, buoyed by a positive trading session on Wall Street. Latest SPI futures suggest the ASX 200 will rise by 40 points or 0.45% at the start of the day. In the United States, the Dow Jones increased by 0.4% and the S&P 500 saw slight gains, while the Nasdaq experienced a 0.4% decline.
Impact of Falling Oil Prices
Energy shares on the ASX 200, including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO), may face headwinds after a significant drop in oil prices overnight. According to Bloomberg, WTI crude oil fell by 1.25% to US$66.36 a barrel, and Brent crude decreased by 0.6% to US$68.80 a barrel. The decline is attributed to traders selling oil as the deadline for US trade tariffs approaches.
Woodside Energy’s Anticipated Update
Investors will be closely monitoring Woodside Energy Group Ltd (ASX: WDS) as it releases its second-quarter update. Analysts from Citi suggest that Woodside might surpass consensus estimates, driven by a stronger realized price. The company is expected to report a 1% increase in production and a 4% rise in revenue.
Gold Prices Surge
ASX 200 gold shares, such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST), are likely to benefit from a surge in gold prices. CNBC reports that gold futures have risen by 1.1% to US$3,444.5 an ounce, spurred by concerns over trade tariffs.
Investment Insights: WiseTech Global
Investment firm Bell Potter has reiterated its buy rating for WiseTech Global Ltd (ASX: WTC), raising its price target from $122.50 to $135.00. The broker anticipates a strong FY25 result, potentially exceeding margin expectations, with FY26 guidance aligning with consensus. Bell Potter noted,
“Ahead of what we expect to be a good FY25 result with a potential beat on margin and FY26 guidance generally consistent with consensus, we have increased the multiples we apply in the EV/EBITDA and PE ratio valuations.”
WiseTech is seen as deserving a premium over peers like Technology One due to its superior growth outlook.
Market Context and Future Outlook
The ASX 200’s performance on Wednesday will be influenced by these diverse factors, reflecting broader economic trends and investor sentiment. The market’s ability to sustain gains will depend on developments in global trade, commodity prices, and corporate earnings reports. As the week progresses, investors will continue to assess these dynamics, seeking opportunities and managing risks in an ever-evolving landscape.
With these elements in play, the ASX 200’s trajectory remains closely watched by market participants eager to capitalize on emerging trends and navigate potential volatility.
