On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a positive start to the month. The benchmark index rose 0.7% to 7,096.5 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to fall heavily
The Australian share market looks set to fall heavily on Wednesday following a very poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 1% lower this morning. In late trade in the United States, the Dow Jones is down 1.8%, the S&P 500 is down 1.5%, and the Nasdaq is down 1.4%.
CBA shares still a sell
Commonwealth Bank of Australia (ASX: CBA) shares are still a sell according to the team at Goldman Sachs. This morning the broker retained its sell rating with an $82.94 price target on the banking giant's shares. While it sees the sale of a 10% share of Bank of Hangzhou for $1.8bn as a positive, it isn't enough to change the broker's view that CBA's shares are vastly overvalued at the current level.
Oil prices hit 7-year highs
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 7.5% to US$103.00 a barrel and the Brent crude oil price has risen 6.8% to US$104.66 a barrel. Disruption to Russia's supply has sparked fears of shortages.
Gold price higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 2.1% to US$1,940.7 an ounce. Demand for the safe haven asset has risen amid increased market volatility.
Telstra trades ex-dividend
The Telstra Corporation Ltd (ASX: TLS) share price is likely to trade lower on Wednesday. This is because the telco giant's shares are trading ex-dividend this morning for its fully franked 8 cents per share interim dividend. Eligible shareholders can look forward to being paid this dividend on 1 April.
