5 things to watch on the ASX 200 on Wednesday

BHP Group Ltd (ASX:BHP) and Qantas Airways Limited (ASX:QAN) shares will be on watch on the ASX 200 on Wednesday…

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank lower. The benchmark index dropped 0.7% to 7,017.8 points.

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

ASX 200 expected to sink

It looks set to be a tough day of trade for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day a sizeable 78 points or 1.1% lower this morning. This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.7%, and the Nasdaq tumble 0.9%.

Oil prices fall

It could be a difficult day for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 1.2% to US$62.61 a barrel and the Brent crude oil price has fallen 0.8% to US$66.50 a barrel. This decline was driven by demand concerns.

BHP third quarter update

The BHP Group Ltd (ASX: BHP) share price will be one to watch this morning when it hands in its third quarter update. Investors will be keen to see if the mining giant is on course to achieve its guidance for FY 2021. BHP is aiming for full year iron ore production of 245 – 255Mt, copper production of 1,510-1,645kt, and petroleum production of 95-102 MMboe.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be on the rise after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.45% to US$1,778.80 an ounce. Demand for safe haven assets appears to have driven the precious metal higher.

Trans-Tasman travel bubble concerns

Travel shares such as Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) will be on watch today amid concerns over the Trans-Tasman travel bubble. This follows news that a border worker in Auckland has tested positive for COVID-19 and is now quarantining.

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