5 things to watch on the ASX 200 on Wednesday

It looks set to be a tough day for the ASX 200…

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower. The benchmark index fell 1.5% to 7,275.6 points.

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

ASX 200 expected to sink again

The Australian share market is expected to drop again on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 81 points or 1.1% lower. This follows a very bad night on Wall Street which saw the Dow Jones fall 1.6%, the S&P 500 drop 2%, and the Nasdaq sink 2.8%. A spike in US bond yields due to rate hike bets spooked investors.

Webjet rated as a buy

The team at Goldman Sachs has retained its buy rating on the Webjet Limited (ASX: WEB) share price. In response to the online travel agent’s virtual investor meeting, the broker has put a buy rating and $6.40 price target on its shares. Goldman notes that the travel recovery remains positive on the international front.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be in the red today after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.85% to US$74.79 a barrel and the Brent crude oil price is down 1.2% to US$78.58 a barrel. The latter reached a three-year high before turning negative.

Afterpay shares to fall

The Afterpay Ltd (ASX: APT) share price looks likely to fall heavily on Wednesday. This follows a very poor night of trade for the Square share price. The payments giant’s shares fell 6% amid a selloff in the tech sector on Wall Street. And as Afterpay is being acquired in Square shares, any movements in its share price impacts the value of the takeover.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a poor day after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.1% to US$1,733.40 an ounce. The precious metal tumbled after bond yields jumped.

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Motley Fool contributor 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 and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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