On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains to finish the day a fraction higher. The benchmark index rose 4.1 points to 6,606.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower
The Australian share market looks set to edge lower on Wednesday following a poor night of trade in the United States. 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 0.6%, the S&P 500 dropped 0.9%, and the Nasdaq tumbled 0.95%. Investors were selling stocks ahead of the release of a key US inflation report.
Oil prices crash
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 8.1% to US$95.64 a barrel and the Brent crude oil price has sunk 7.5% to US$99.10 a barrel. Demand concerns weighed heavily on prices.
IDP Education rated as a buy
The IDP Education Ltd (ASX: IEL) share price has major upside potential according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating with a $35.50 price target. It commented: "We view this as a structural growth story as international student markets open up. India is a key driver of this trend."
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 lower again overnight. According to CNBC, the spot gold price is down 0.5% to US$1,723.2 an ounce. Looming rate hikes are weighing on the safe haven asset.
South32 sells royalties
The South32 Ltd (ASX: S32) share price will be on watch today after the miner announced the sale of four non-core base metals royalties to Anglo Pacific Group for US$185 million. This comprises US$103 million in cash and US$82 million in scrip. The latter will leave South32 with a ~16.9% interest in Anglo Pacific. These royalties are from third party interests in copper and nickel projects in Australia, USA and Chile.
