On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.2% to 7,256 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 looks set to give back yesterday's gains on Wednesday amid a resurgence in Omicron fears. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.4% lower this morning. In late trade in the United States, the Dow Jones is down 1.4%, the S&P 500 is down 1.3%, and the Nasdaq is trading 1.3% lower.
GUD shares to return
The GUD Holdings Limited (ASX: GUD) share price is expected to return to trade on Wednesday following the completion of the institutional component of its equity raising. The products company is raising a total of $405 million to fund the purchase of Autopacific Group for approximately $744.6 million. This deal is expected to be low double digit earnings per share accretive.
Oil prices tumble
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices tumbled. According to Bloomberg, the WTI crude oil price is down 5.8% to US$65.92 a barrel and the Brent crude oil price has fallen 4% to US$70.51 a barrel. Doubts about the efficacy of current vaccines on the Omicron variant spooked oil markets.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price dropped despite the market selloff. According to CNBC, the spot gold price is down 0.4% to US$1,778 an ounce. News that the US Fed will not let Omicron stop it from speeding up its bond-buying taper appears to have weighed on the precious metal.
GrainCorp downgraded
The Graincorp Ltd (ASX: GNC) share price could come under pressure on Wednesday. This morning the team at Bell Potter downgraded the grain exporter's shares to a sell rating with a $6.15 price target. Its analysts believe GrainCorp's earnings will peak in FY 2022 and then contract significantly next year.
