5 things to watch on the ASX 200 on Wednesday

Here's what to expect on the ASX 200 on Wednesday.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and recorded a disappointing decline. The benchmark index fell 0.9% to 7,061.6 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 despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is down 0.25%, the S&P 500 has fallen 0.1%, and the Nasdaq is 0.1% higher.

Oil prices fall

It could be another tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell again overnight. According to Bloomberg, the WTI crude oil price is down 0.8% to US$72.47 a barrel and the Brent crude oil price is down 0.85% to US$77.38 a barrel. Demand concerns continue to put pressure on prices.

Graincorp rated as a buy

Bell Potter thinks that investors should be buying Graincorp Ltd (ASX: GNC) shares. According to a note, the broker has retained its buy rating and $9.55 price target on the grain exporter's shares. Including dividends, Bell Potter is expecting a 30% total return from its shares over the next 12 months.

Gold price edges lower

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price edged lower. According to CNBC, the spot gold price is down 0.3% to US$2,035.9 an ounce. A firmer US dollar appears to have weighed on the precious metal.

Evolution's acquisition

Evolution Mining Ltd (ASX: EVN) shares could be worth watching today if they return from their trading halt. The gold miner requested a halt yesterday so it could launch a $525 million equity raising. The proceeds will be used to acquire an 80% interest in the Northparkes Copper-Gold Mine from CMOC Group for total cash consideration of up to US$475 million.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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