5 things to watch on the ASX 200 on Wednesday

It looks set to be a good day for the ASX 200 on Wednesday…

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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 0.7% to 7,390.1 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.7% higher this morning. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is up 0.6%, and the Nasdaq is trading 1.1% higher.

Inghams shares given buy rating

The Inghams Group Ltd (ASX: ING) share price was sold off on Tuesday after the release of a disappointing trading update. The team at Goldman Sachs appears to see this as a buying opportunity for investors. This morning the broker retained its buy rating but trimmed its price target to $3.90. Goldman said: “We remain Buy-rated on ING as we are attracted to its relatively defensive revenue stream; duoploy industry structure; strong balance sheet and undemanding valuation.”

Oil prices storm higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 3.5% to US$80.95 a barrel and the Brent crude oil price has risen 3.3% to US$83.55 a barrel. Easing Omicron concerns boosted prices.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 1.15% to US$1,819.60 an ounce. Traders were bidding the gold price higher after the US dollar and US Treasury yields softened.

Tech shares on watch

It could be a much-needed good day for tech shares including Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) after US tech stocks rebounded. As the local tech sector tends to follow the Nasdaq index, its gain of 1.1% on Wall Street bodes well for Aussie tech shares on Wednesday.

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 and has recommended Afterpay Limited and Altium. The Motley Fool Australia owns and has recommended Afterpay Limited. 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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