On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.4% to 7,454 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 edge lower
The Australian share market looks set to edge lower on Wednesday following a poor night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. On Wall Street, the Dow Jones fell 0.25%, the S&P 500 dropped 0.35%, and the Nasdaq tumbled 0.3%. Inflation concerns weighed on investor sentiment.
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a great day after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 6.8 % to US$100.75 a barrel and the Brent crude oil price has risen 6.4% to US$104.76 a barrel. This follows the easing of lockdowns in Shanghai and OPEC warning that it would be impossible to replace potential supply losses from Russia.
EML takeover rumours swirl
The EML Payments Ltd (ASX: EML) share price will be one to watch this morning amid rumours the payments company held takeover talks with private equity firm Bain Capital. According to the AFR, the two parties ultimately failed to agree on a deal after a period of due diligence. EML is currently one of the most shorted ASX 200 shares with short interest of 9.5%. Those short sellers may have dodged a bullet on this occasion.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 1.1% to US$1,969.1 an ounce. The gold price was given a boost from a US inflation reading that was the highest in four decades.
IDP remains a buy
The IDP Education Ltd (ASX: IEL) share price could be a top option for investors according to Goldman Sachs. This morning the broker retained its buy rating and lifted its price target on the student placement and language testing company's shares to $35.50. Goldman notes that international student visa data shows the recovery is underway in Australia.
