On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and tumbled lower. The benchmark index ended the day 0.7% lower at 7,261.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to edge lower on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points or 0.1% lower this morning. This follows a poor start to the shortened week on Wall Street, which saw the Dow Jones fall 0.6%, the S&P 500 drop 0.2%, and the Nasdaq push 0.2% higher.
Oil prices sink
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could tumble on Wednesday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$73.73 a barrel and the Brent crude oil price is down 3% to US$74.86 a barrel. Oil prices hit a six-year high before turning negative. This follows news that OPEC has postponed its production talks indefinitely.
Pinnacle market update
The Pinnacle Investment Management Group Ltd (ASX: PNI) share price will be on watch today after it provided the market with an update on its performance fee expectations in FY 2021. According to the update, Pinnacle’s seven affiliates have crystallised performance fees of $85.9 million. Its share of these fees is $19.5 million. This compares to $6.6 million in FY 2020.
Gold price rises
It could be a good day for gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price pushed higher. According to CNBC, the spot gold price is up 0.75% to US$1,796.70 an ounce. Falling bond yields gave the precious metal a boost.
Nanosonics downgraded to sell
The Nanosonics Ltd (ASX: NAN) share price could come under pressure today after being the subject of a bearish broker note out of Goldman Sachs. According to the note, the broker has downgraded the infection prevention company’s shares to a sell rating with a reduced price target of $4.93. Goldman made the move after reducing its earnings estimates on the belief that the growth recovery may be shallower than its previous expectations.