On Tuesday, the S&P/ASX 200 Index (ASX: XJO) started the shortened week in a very poor fashion. The benchmark index sank 2.1% to 7,318 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to sink again
The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.
Oil prices rebound
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 3.2% to US$101.63 a barrel and the Brent crude oil price has risen 2.7% to US$105.04 a barrel. Supply fears appear to have boosted prices.
South32 shares remain a buy
The South32 Ltd (ASX: S32) share price tumbled on Tuesday following the release of its quarterly update. The team at Goldman Sachs appear to see this as a buying opportunity. This morning the broker has retained its conviction buy rating with a trimmed price target of $5.70. While acknowledging that South32 has increased its cost guidance, overall Goldman was pleased with the company’s performance during the quarter.
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 overnight. According to CNBC, the spot gold price is up 0.55% to US$1,906.5 an ounce. Economic growth fears and inflation concerns have supported the safe haven asset.
Mineral Resources tipped as a buy
The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Bell Potter. This morning the broker has retained its buy rating and $70.00 price target on the mining and mining services company’s shares. In response to its US$1 billion notes offering, the broker believes it is “further confirmation of MIN’s commitment to the transformational portfolio of growth projects.”