On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and finished in the red. The benchmark index fell 0.3% to 7,128.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to push higher on Wednesday despite a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher this morning. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 fell 0.8%, and the Nasdaq tumbled 2.35%.
BHP demerger
The BHP Group Ltd (ASX: BHP) share price is likely to sink deep into the red on Wednesday. This is because the Big Australian's shares are trading ex-dividend for its in-specie dividend this morning. This in-specie dividend will see eligible shareholders receive one new Woodside Energy Group Ltd (ASX: WDS) share for every 5.534 BHP shares they own. These shares have a total market value of $26.5 billion at current prices, so BHP may see its market capitalisation fall in line with this today.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued day after oil prices pulled back. According to Bloomberg, the WTI crude oil price is down 0.5% to US$109.78 a barrel and the Brent crude oil price has fallen slightly to US$113.40 a barrel. US oil prices softened amid speculation that President Biden could ban oil exports.
Pilbara Minerals' BMX auction
The Pilbara Minerals Ltd (ASX: PLS) share price will be in focus today following the release of the results of the fifth Battery Material Exchange (BMX) auction. A cargo of 5,000 tonnes at a target grade of ~5.5% lithia was presented for sale on the platform and received a winning bid of US$5,955 per dry metric tonne (dmt). Management advised that strong interest was received in both participation and bidding by a broad range of buyers. The winning bid is an improvement on the fourth BMX auction which reported a winning bid of US$5,650 dmt.
Gold price rises
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 overnight. According to CNBC, the spot gold price is up 0.95% to US$1,865.4 an ounce. A pullback in the US dollar boosted the gold price.
