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5 things to watch on the ASX 200 on Wednesday

On Tuesday the S&P/ASX 200 Index (ASX: XJO) returned from the long weekend and recorded a stunning gain. The benchmark index jumped 2.45% to 6,144.9 points.

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

ASX 200 to fall.

The ASX 200 looks set to run out of steam on Wednesday and drop lower. According to the latest SPI futures, the benchmark index is expected to fall 91 points or 1.5% at the open. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 1.1%, the S&P 500 drop 0.8%, and the Nasdaq push 0.3% higher. The latter index hit a record high during last night’s trade.

Oil prices mixed.

Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil rose 0.5% to US$38.38 a barrel and the Brent crude oil price fell 0.4% to US$40.64 a barrel. Oil prices were notably higher at one stage on supply cut optimism, before giving back most of their gains.

ANZ downgraded to a neutral rating.

One leading broker thinks the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price may have peaked after its strong run. According to a note out of Goldman Sachs, its analysts have downgraded the banking giant’s shares to a neutral rating with a $20.02 price target. The broker made the move on valuation grounds.

Gold price rebounds.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise after the gold price rebounded. According to CNBC, the spot gold price rose 0.85% to US$1,719.00 an ounce ahead of the U.S. Federal Reserve meeting this week.

Tech shares on watch.

Tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) could defy the market decline today after their U.S. counterparts pushed higher. The Nasdaq index broke through the 10,000 points mark for the first time thanks to solid gains by the likes of Amazon and Facebook.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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