5 things to watch on the ASX 200 on Wednesday

Here’s what to expect on the ASX 200 on Wednesday…

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.4% to 7,316.2 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 solid night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 climbed 0.5%, and the Nasdaq edged 0.2% higher.

ANZ half year results

All eyes will be on the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price this morning when the banking giant releases its half-year results. According to a note out of Goldman Sachs, its analysts expect ANZ to deliver a pre-provisioning operating profit of $4,270 million and cash earnings of $2,971 million for the half. This will be down 4.2% and 7.4%, respectively, from the second half of FY 2021. As for dividends, the broker has pencilled in a fully franked interim dividend of 72 cents per share for the period.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices tumbled. According to Bloomberg, the WTI crude oil price is down 2.5% to US$102.59 a barrel and the Brent crude oil price has fallen 2.3% to US$105.09 a barrel. This appears to have been driven by demand concerns amid lockdowns in China.

Woolworths shares remain a buy

The Woolworths Group Ltd (ASX: WOW) share price is good value according to the team at Goldman Sachs. In response to the retail giant’s quarterly update, the broker has reiterated its buy rating and lifted its price target to $41.70. Goldman believes “WOW will be a defensive player vs escalating cost inflation.”

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 0.2% to US$1,867.6 an ounce. The precious metal appears to be in a holding pattern ahead of the US Federal Reserve’s rate decision this week.

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. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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