On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had one of its worst days of the year. The benchmark index sank 1.4% to 7,008.9 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market looks set to rebound on Wednesday following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.5%, the S&P 500 is up 1.15% and the Nasdaq is 1.5% higher.
Oil prices crash
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 4.7% to US$71.29 a barrel and the Brent crude oil price has dropped 4.2% to US$77.39 a barrel. Traders were selling oil after an in-line US inflation reading reignited fears over rate hikes and a potential financial crisis.
Qantas shares are a buy
The team at Goldman Sachs has reiterated its bullish view on Qantas Airways Limited (ASX: QAN) shares. The broker said: "We believe that the -7% share price reaction on results day (and the current share price) does not reflect the group's improved earnings capacity." It has a conviction buy rating and $8.30 price target on the airline operator's shares.
Gold price softens
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price ran out of steam and edged lower overnight. According to CNBC, the spot gold price is down 0.35% to US$1,909.8 an ounce. Rising bond yields halted gold's recent surge.
ASX 200 shares going ex-div
A number of ASX 200 shares are going ex-dividend on Wednesday and could trade lower. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), auto retailer Eagers Automotive Ltd (ASX: APE), poultry producer Inghams Group Ltd (ASX: ING), and telco TPG Telecom Ltd (ASX: TPG). In respect to Eagers Automotive, last month it declared a record fully franked final dividend of 49 cents per share. This will now be paid at the end of the month on 31 March.
