On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was sold off and sank deep into the red. The benchmark fell 1.5% to 7,024.3 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
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ASX 200 expected to rebound
The Australian share market looks set to rebound strongly on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 78 points or 1.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.35%, the S&P 500 is up 0.2%, and the Nasdaq is up 0.1%.
Oil prices rise
It could be a decent day for energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$75.80 a barrel and the Brent crude oil price has risen 0.1% to US$79.85 a barrel. Oil prices were boosted by a softer US dollar and a plan to restock petroleum reserves.
Qantas rated as a buy
The Qantas Airways Limited (ASX: QAN) share price could still be great value according to analysts at Goldman Sachs. This morning, its analysts have reiterated their conviction buy rating and $8.20 price target on its shares. It said: "With the market capitalization 4% above pre-COVID levels and EV (based on last reported net debt) 12% below pre-COVID, we believe the stock is not appropriately pricing QAN's improved earnings capacity."
Gold price jumps
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.6% to US$1,826.2 an ounce. A softer US dollar gave the precious metal a boost.
Buy the REA dip
The REA Group Limited (ASX: REA) share price was sold off on Tuesday and Goldman Sachs thinks investors should be taking advantage of the decline. The broker has reiterated its conviction buy rating with a trimmed price target of $158.00. The broker said: "Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount)."
