On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.25% to 6,807.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to have a difficult day 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 47 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.15%, and the Nasdaq sank 1.9%.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$94.88 a barrel and the Brent crude oil price has fallen 1.1% to US$104.05 a barrel. Demand concerns weighed on prices.
Rio Tinto half-year results
The Rio Tinto Limited (ASX: RIO) share price will be on watch this morning when the mining giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting revenue of US$29,655 million and underlying EBITDA of US$15,671 million. The broker has also pencilled in an ordinary dividend of US$3.18 per share and a special dividend of US$0.50 per share.
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,715.80 an ounce. Traders were selling gold ahead of the US Federal Reserve meeting this week.
Iluka demerger
The Iluka Resources Limited (ASX: ILU) share price could drop into the red today when the mineral sands company demerges its Sierra Rutile business. Following a review, the Iluka board determined that a separation of Sierra Rutile by way of demerger is the optimal pathway for the business to achieve its growth objectives, reach its potential, and maximise value for Iluka shareholders.
