On Tuesday, the S&P/ASX 200 Index (ASX: XJO) came under pressure after the RBA made a shock rate hike. The benchmark index fell 0.9% to 7,267.4 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to tumble again
The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower this morning. On Wall Street, the Dow Jones was down 1.2%, the S&P 500 dropped 1.2% and the Nasdaq fell 1.1%.
Oil prices sink
It could be a very tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 5.5% to US$71.50 a barrel and the Brent crude oil price has sunk 5.2% to US$75.16 a barrel. This was driven by worries about a U.S. debt default and expectations that fuel demand could suffer if central banks in the U.S. and Europe raise interest rates again this week.
Buy Woolworths shares
The Woolworths Group Ltd (ASX: WOW) share price could be great value according to Goldman Sachs. This morning, the broker has reiterated its conviction buy rating with an improved price target of $42.80. In response to its third-quarter update, the broker said: "We tweak our FY23-25e group sales by ~+1% and NPAT by 0.4%-1.1% respectively. This is due to slightly higher sales across all key business segments while our margin views remain intact. Our updated forecasts imply FY22-25e ~3.4% sales CAGR and ~9.6% CAGR for EBIT/NPAT respectively."
Gold price jumps
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.6% to US$2,024.2 an ounce. The market selloff appears to have increased demand for safe haven assets.
Megaport shares a buy
The team at Morgans believes that Megaport Ltd (ASX: MP1) shares could be heading even higher after last week's heroics. This morning, the broker retained its add rating with an improved price target of $9.00. It highlights that "management's guidance for FY23 and FY24 was well ahead of consensus expectations."
