On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and dropped into the red again. The benchmark index fell 0.1% to 8,255.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set to sink on Wednesday following a mixed session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 0.9% lower. In late trade on Wall Street, the Dow Jones is down 0.5%, the S&P 500 is down 0.1%, and the Nasdaq is flat. Mining sector weakness weighed on global markets.
Oil prices edge higher
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a better session after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$68.26 a barrel and the Brent crude oil price is up 0.3% to US$72.03 a barrel. This reflects optimism ahead of the OPEC+ meeting.
CBA first quarter update
Commonwealth Bank of Australia (ASX: CBA) shares will be on watch on Wednesday. That's because Australia's largest bank will be releasing its first quarter update before the market open. With its shares trading at a record high, expectations are equally high for the banking giant's quarter. The consensus estimate is for cash earnings of approximately $2.5 billion for the three months.
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) look set to have a poor session after the gold price dropped again overnight. According to CNBC, the gold futures price is down 0.5% to US$2,606 an ounce. The gold price hit a two-month low due to a stronger US dollar.
Brickworks shares upgraded
Brickworks Limited (ASX: BKW) shares could be undervalued according to analysts at Bell Potter. This morning, the broker upgraded the building products company's shares to a buy rating (from hold) with an improved price target of $32.00 (from $31.00). The broker said: "We view the pullback in share price as an opportunity to get BMats and Property at or close to the bottom of the cycle. We upgrade our rating to Buy with a PT of $32.00ps."
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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