On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a disappointing session. The benchmark index fell 0.45% to 7,234.7 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 drop
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 42 points or 0.6% lower this morning. On Wall Street, the Dow Jones was down 1%, the S&P 500 fell 0.65% and the Nasdaq dropped 0.2%.
Oil prices fall
It could be a tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.85% to US$70.50 a barrel and the Brent crude oil price has fallen 0.9% to US$74.55 a barrel. Weak economic data out of China weighed on prices.
Incitec Pivot results
The Incitec Pivot Ltd (ASX: IPL) share price will be one to watch on Wednesday. That's because the agricultural chemicals company is scheduled to release its half-year results. In addition, after the market close on Tuesday, Incitec Pivot announced its entry into a new long term gas supply agreement for its ammonium nitrate plant in Moranbah. The new gas supply agreement is expected to sustain the long-term competitive advantage of its Moranbah ammonium nitrate plant.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure after the gold price fell overnight. According to CNBC, the spot gold price is down 1.4% to US$1,994.6 an ounce. This was driven by comments out of the US Federal Reserve about rate cut outlook.
Life360 shares rated as a buy
The Life360 Inc (ASX: 360) share price could be great value according to a note out of Goldman Sachs. In response to its first-quarter update, the broker has reiterated its buy rating with an improved price target of $8.35. It said: "[W]e now believe Life360 has reached its profitability inflection point with operating leverage and prudent cost management to drive a material earnings uplift from here as the company scales."
