5 things to watch on the ASX 200 on Wednesday 3 August 2022

5 things to watch on the ASX 200 on Wednesday 3 August 2022

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought back from a tough start to record the smallest of gains. The benchmark index rose 5.1 points to 6,998.1 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to have a subdued day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade on Wall Street, the Dow Jones is down 1.1%, the S&P 500 has dropped 0.5% and the NASDAQ is trading a fraction lower.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 0.35% to US$94.22 a barrel and the Brent crude oil price has risen 0.2% to US$101.26 a barrel. This was driven by supply concerns ahead of the OPEC meeting.

Virgin Money UK Q3 update

The Virgin Money UK (ASX: VUK) share price could have a decent day. The UK based bank’s shares pushed higher on the LSE overnight after investors responded positively to its third quarter update. That update revealed that its net interest margin improved to 187 basis points. This reflects higher rates, deposit spreads, and higher yielding lending mix, which were offset by ongoing mortgage spread pressure.

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the slide today after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.45% to US$1,779 an ounce. The precious metal dropped despite increasing recession fears.

Pinnacle results

The Pinnacle Investment Management Group Ltd (ASX: PNI) share price will be on watch today when the investment company releases its full-year results. To a note out of Morgans, its analysts are expecting the company to deliver FY 2022 net profit after tax of $75.3 million, up 12.3% on the prior corresponding period.

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