On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped notably lower. The benchmark index ended the day 0.95% lower at 7,511 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
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ASX 200 futures pointing lower
The Australian share market is expected to continue its poor run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 38 points or 0.5% lower today. This follows a poor night of trade on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.7%, and the Nasdaq sink 0.9%.
BHP reports huge profit growth
The BHP Group Ltd (ASX: BHP) share price will be on watch today following the after market release of its full year results on Tuesday. The Big Australian reported a 69% increase in underlying EBITDA to US$37,379 million, allowing it to declare a record final dividend of US$2.00 per share. This brought its full year dividend to US$3.01 per share, up 151% and ahead of expectations. BHP and Woodside Petroleum Limited (ASX: WPL) also agreed to merge their oil and gas operations. BHP's UK shares ended the day 3.5% higher.
Oil prices fall
It could be a difficult day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell. According to Bloomberg, the WTI crude oil price is down 0.8% to US$66.76 a barrel and the Brent crude oil price is down 0.5% to US$69.18 a barrel. Weak demand in Asia has been weighing on prices.
CSL full year results
The CSL Limited (ASX: CSL) share price will be on watch today when it releases its full year results. The biotherapeutics company has provided guidance for earnings growth of 3% to 8% in FY 2021. However, this isn't likely to be the main focus with the result. Investors will be keen to find out how plasma collection headwinds are impacting the company. Goldman recently commented: "We see scope for cautious commentary on FY22, largely predicated around cost, which may manifest in another year of cautious guidance."
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a subdued day on Wednesday after the gold price edged lower. According to CNBC, the spot gold price is down 0.15% to US$1,787 an ounce. The precious metal was rising on weaker bond yields before giving back these gains.
