5 things to watch on the ASX 200 on Wednesday

It looks set to be a difficult start to the month for the ASX 200…

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled notably lower. The benchmark index fell 1% to 7,211.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to extend its losses on Wednesday following a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 0.6%, and the Nasdaq was down 0.4%.

BHP demerger

Today is payday for eligible BHP Group Ltd (ASX: BHP) shareholders. This morning the mining giant is scheduled to complete its demerger and pay shareholders new shares in Woodside Energy Group Ltd (ASX: WDS). Shareholders will receive one new Woodside share for every 5.534 BHP shares they owned on the ex-dividend date.

Oil prices mixed

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down slightly to US$115.04 a barrel and the Brent crude oil price has risen 1% to US$122.84 a barrel. The latter was boosted by the EU banning most Russian oil imports.

AVZ Minerals shares due to return

The Avz Minerals Ltd (ASX: AVZ) share price is scheduled to return from its lengthy suspension on Wednesday. The lithium developer is currently battling legal action from a Chinese company that claims it owns a stake in the Manono Lithium project. There are fears that AVZ could end up owning as little as 36% of the project.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1% to US$1,833 an ounce. The precious metal tumbled after bond yields widened, reducing its appeal.

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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