On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark index fell 0.55% to 6,649.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to jump
The Australian share market looks set to have a great day on Wednesday following a very strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 79 points or 1.2% higher this morning. On Wall Street, the Dow Jones rose 2.4%, the S&P 500 climbed 2.75%, and the Nasdaq jumped 3.1%. Investors are betting that the market has now bottomed.
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$104.10 a barrel and the Brent crude oil price has risen 1.1% to US$107.42 a barrel. Tight supply conditions boosted oil prices.
BHP rated as a buy
The BHP Group Ltd (ASX: BHP) share price remains good value according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating with a trimmed price target of $40.80. In respect to its guidance, Goldman commented: "Released guidance for FY23 production is on average 2-3% below GSe, but importantly the largest and highest margin assets such as Pilbara iron ore & Escondida copper were in-line or above our estimates."
Gold price flat
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price traded flat overnight. According to CNBC, the spot gold price is unchanged at US$1,710.2 an ounce. A softer US dollar was offset by rate hike bets.
Allkem quarterly
The Allkem Ltd (ASX: AKE) share price will be on watch today when the lithium miner releases its eagerly awaited quarterly update. Investors will be keen to see the price the company is commanding for its lithium and how it has handled COVID-related labour shortages.
