On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought back again from an early decline to finish the day marginally higher. The benchmark index rose slightly to 7,530.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market is expected to fall on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 20 points or 0.3% lower this morning. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones fall 0.75%, the S&P 500 drop 0.35%, and the Nasdaq edge 0.05% higher.
Macquarie shares given neutral rating
The Macquarie Group Ltd (ASX: MQG) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker has retained its neutral rating but lifted its price target on the investment bank's shares to $156.52. Goldman lifted its price target after revising its earnings estimates higher to reflect Macquarie's recent AGM update and broader market conditions. However, it isn't enough for a more positive rating due to valuation reasons.
Oil prices tumble
It could be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices tumbled. According to Bloomberg, the WTI crude oil price is down 1.3% to US$68.38 a barrel and the Brent crude oil price is down 0.8% to US$71.63 a barrel. Oil prices fell on demand concerns.
Shares going ex-dividend
A number of ASX 200 shares are going ex-dividend today and could trade lower this morning. This includes health supplements company Blackmores Limited (ASX: BKL), supply chain logistics company Brambles Limited (ASX: BXB), private health insurer Medibank Private Ltd (ASX: MPL), and job listings giant SEEK Limited (ASX: SEK).
Gold price sinks
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch on Wednesday after the gold price sank. According to CNBC, the spot gold price is down 2% to US$1,796.40 an ounce. A combination of a strong US dollar and higher yields took the shine off the precious metal.
