On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong day and charged notably higher. The benchmark index jumped 1.7% to 6,779.2 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Wednesday after a volatile but positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.8% lower this morning. That's despite in late trade on Wall Street, the Dow Jones is now up 0.9%, the S&P 500 is up 0.8%, and the Nasdaq is up 0.5%.
Oil prices sink
Energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.1% to US$82.80 a barrel and the Brent crude oil price has fallen 1.8% to US$89.97 a barrel. Global recession fears are weighing on prices.
BHP Q1 update
The BHP Group Ltd (ASX: BHP) share price will be one to watch today when the mining giant releases its first quarter update. The market is expecting the Big Australian to report copper production of 429kt, iron ore shipments of 72.3Mt, met coal production of 7.6Mt, and nickel production of 21.1Mt. All eyes will be on its cost guidance as well.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,655.4 an ounce. Gold fell despite a spot of weakness in the US dollar and treasury yields.
Webjet shares a strong buy
The Webjet Limited (ASX: WEB) share price could be heading a lot higher from current levels. According to a note out of Goldman Sachs, its analysts have added the online travel agent's shares to their coveted conviction list with a price target of $6.50. It said: "WEB is a structural beneficiary of the recovery from COVID with favorable exposure to the growing online channel and, more importantly, a strong positioning and improving scale in the niche Bedbanks segment."
