On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.55% to 7,118.2 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to rise again on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% higher this morning. This follows a strong night on Wall Street, which saw the Dow Jones rise 0.6%, the S&P 500 climb 1.15%, and the Nasdaq jump 1.65%. It is also worth highlighting that Australian inflation data will be released today, which could make things volatile.
Oil prices tumble
It could be a difficult day for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 2.3% to US$67.76 a barrel and the Brent crude oil price has tumbled 2.45% to US$72.37 a barrel. Oil prices fell on interest rate concerns.
Bega Cheese shares downgraded
The team at Bell Potter has downgraded Bega Cheese Ltd (ASX: BGA) shares to a hold rating with a reduced price target of $3.50 (from $4.00). This follows news that higher farmgate milk prices are set to weigh on its profits. It said: "We downgrade our NPAT forecasts by -50% in FY24e and -40% in FY25e, reflecting a higher FMP and higher lease costs, reflecting both the timing and value of the Vegemite Way sale."
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor session after the gold price tumbled overnight. According to CNBC, the spot gold price is down 0.6% to US$1,922.6 an ounce. Gold prices fell following the release of strong US economic data.
Medibank shares rated neutral
The Medibank Private Ltd (ASX: MPL) share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating with a $3.69 price target. This follows news that APRA has announced a $250 million capital charge following its data breach. Goldman believes that Medibank's dividend will be impacted by the move. It said: "We think MPL's guided capital position suggests a dividend of around 5cps to 6.7cps over 2H23 v pcp of 7.3cps."
