On Tuesday the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.5% to 7,627.8 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set for a difficult session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 56 points or 0.75% lower. In late trade on Wall Street, the Dow Jones is down slightly, the S&P 500 has fallen 0.7%, and the Nasdaq is 1.8% lower.
Oil prices tumble
It could be a poor session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$70.25 a barrel and the Brent crude oil price is down 1.5% to US$75.86 a barrel. This was despite rising tensions in the Red Sea.
Tech shares on watch
Tech shares including WiseTech Global Ltd (ASX: WTC) and Xero Limited (ASX: XRO) will be on watch today after a tech sell-off on Wall Street on Tuesday. This was driven partly by Apple shares, which tumbled following a broker downgrade. The Nasdaq index is down 1.8% in late trade.
Gold price edges lower
ASX 200 gold shares such as 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 0.1% to US$2,007.3 an ounce. Not even the market volatility could keep gold in positive territory.
Big miners likely to fall
Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) look set to open the day lower on Wednesday following a poor night of trade for their US-listed shares on Wall Street overnight. Both miners recently hit record highs thanks to strong iron ore prices.
