The S&P/ASX 200 Index (ASX: XJO) experienced a strong session on Tuesday, climbing 1.1% to close at 8,795.7 points. As traders prepare for Wednesday, several key factors could influence market performance, including anticipated declines, rising oil and gold prices, and significant corporate updates.
Market Outlook for Wednesday
Despite a positive trading session on Wall Street, the Australian share market is expected to open lower on Wednesday. According to the latest SPI futures, the ASX 200 is projected to decline by 16 points, or 0.2%. In the United States, the Dow Jones increased by 0.2%, the S&P 500 rose 0.4%, and the Nasdaq gained 0.5%.
Oil Prices Surge, Potential Impact on Energy Shares
Energy stocks within the ASX 200, including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO), are likely to benefit from rising oil prices. According to Bloomberg, the price of West Texas Intermediate (WTI) crude oil climbed 0.75% to US$58.45 per barrel, while Brent crude also increased by 0.6% to US$58.45. The uptick in oil prices can be attributed to increased buying activity amid escalating geopolitical risks.
Lendlease Group Expands Development Pipeline
Lendlease Group (ASX: LLC) is in the spotlight following its announcement of growth in both Development and Construction pipelines. The company secured the Sydney Metro Hunter Street West Over Station Development, which will include the construction of a new metro station. This ambitious project encompasses a 52-storey premium commercial tower at the intersection of George Street and Hunter Street in Sydney’s Central Business District. The total estimated gross end value for the West Tower is approximately US$2.2 billion, and US$1.5 billion for the station construction. The project is scheduled to commence in FY 2027 and aims for completion around 2032.
Gold Price Reaches New Heights
Gold shares on the ASX 200, including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST), may experience a positive trading day following a significant increase in gold prices. As reported by CNBC, gold futures have surged 1.1%, reaching US$4,517.6 per ounce. This increase reflects heightened demand for safe-haven assets amid ongoing economic uncertainty.
Positive Ratings for Fenix Resources
In a noteworthy development, Bell Potter has reiterated its buy rating on Fenix Resources Ltd (ASX: FEX), setting an improved price target of 70 cents. The brokerage highlighted that FEX continues to expand its portfolio of low-capital mining assets while leveraging its integrated logistics networks. This strategy is designed to enhance cash flows and shareholder returns. Fenix holds the largest storage capacity at the strategically important Geraldton Port, and an expanded agreement with SMC positions the company for a clear pathway to 10 million tonnes per annum of iron ore production at significantly reduced unit costs.
As the ASX 200 opens on Wednesday, investors will be closely monitoring these developments, as they could shape market sentiment and trading patterns throughout the day.
