On Tuesday, the S&P/ASX 200 Index (ASX: XJO) jumped after the RBA's cash rate meeting and ended the day with a solid gain. The benchmark index rose 0.5% to 7,364.7 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 give back yesterday's gains and more on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 67 points or 0.9% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.8%, the S&P 500 is down 1.7% and the Nasdaq is 1.4% lower. This follows comments by the US Federal Reserve that rates may go higher than previously expected.
Oil prices sink
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.7% to US$77.52 a barrel and the Brent crude oil price has dropped 3.4% to US$83.26 a barrel. Traders were selling oil on US rate hike concerns.
InvoCare downgraded
The team at Morgans has downgraded InvoCare Limited (ASX: IVC) shares to a hold rating with an improved price target of $12.19. This follows news that TPG has tabled a non-binding takeover offer of $12.65 per share. The broker assigns a 70% probability that the deal completes and appears to believe investors should be locking in their gains.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough session after the gold price tumbled overnight. According to CNBC, the spot gold price is down 2% to US$1,818.5 an ounce. A hawkish US Fed put pressure on the precious metal,
ASX 200 shares going ex-div
A number of ASX 200 shares are going ex-dividend on Wednesday and could trade lower. This includes logistics solutions company Brambles Limited (ASX: BXB), retail group Super Retail Group Ltd (ASX: SUL), and energy giant Woodside. The latter will then be paying a massive 211.3 cents per share final dividend to shareholders in April.
