On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ultimately fell a touch short. The benchmark index edged ever so slightly lower to 7,378.4 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 expected to fall
The Australian share market looks set to fall on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is down 0.95%, and the Nasdaq is trading 1.5% lower.
CSL shares on watch
The CSL Limited (ASX: CSL) share price will be one to watch today if it completes its equity raising in time to return to trade this morning. The biotherapeutics giant is raising US$4.5 billion (A$6.3 billion) through an institutional placement and a further US$534 million (A$750 million) via a share purchase plan. Combined with its debt facilities, this will support the acquisition of Vifor Pharma for US$11.7 billion (A$16.4 billion). Management expects the acquisition to be low-to-mid teens NPATA per share accretive in the first full year of ownership.
Oil prices drop
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped. According to Bloomberg, the WTI crude oil price is down 1.1% to US$70.54 a barrel and the Brent crude oil price has fallen 1.2% to US$73.50 a barrel. Omicron concerns continue to weigh on the demand outlook.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled. According to CNBC, the spot gold price is down 0.9% to US$1,773.3 an ounce. The gold price is falling amid expectations the US Fed could lift rates sooner than expected.
Westpac annual general meeting
The Westpac Banking Corp (ASX: WBC) share price will be on watch today when the banking giant holds its annual general meeting. Investors will be keen to hear the bank talk about its cost cutting plans. Particularly given how the market is becoming increasing sceptical that it will be able to reduce its cost base down to $8 billion.
