On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended its winning streak with a small decline. The benchmark index fell 0.3% to 6,977.1 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set for a mildly positive session on Wednesday following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. In late trade on Wall Street, the Dow Jones is up 0.2%, the S&P 500 has risen 0.35%, and the Nasdaq is 1.1% higher.
Oil prices sink
It could be a difficult session for ASX 200 energy shares 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 3.9% to US$77.70 a barrel and the Brent crude oil price has fallen 3.8% to US$81.96 a barrel. Weak global economic data sent oil prices to their lowest levels since July.
HMC named as a buy
HMC Capital Ltd (ASX: HMC) shares are one of five REITs that analysts at Bell Potter have initiated coverage on with buy ratings this morning. The broker has a buy rating and a $5.55 price target on its shares. It said: "The REIT sector is presenting significant value from a historic valuation metric perspective with material discounts to NTA (passive REITs c.27% discount), high dividend yields (c.6.4% WAV and passive REITs +7%) and undemanding PE ratios."
Gold price fall
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price fell overnight. According to CNBC, the spot gold price is down 0.7% to US$1,974.6 an ounce. Softening demand for safe haven assets put pressure on gold.
Tech sector expected to lift off
It could be a good session for ASX 200 tech stocks such as Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) after their peers on Wall Street charged higher overnight. Investors appear to be flooding back into the sector after investor sentiment improved.