On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a tough session. The benchmark index fell 0.7% to 7,468.5 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 following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.45%, the S&P 500 has risen 0.6%, and the Nasdaq is 0.8% higher.
Oil prices fall
It looks set to be a poor session for ASX 200 energy shares including 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 1.2% to US$71.37 a barrel and the Brent crude oil price is down 1% to US$76.83 a barrel. Oil prices fell after the US reported a surprise inventory build.
South32 upgraded to buy rating
Goldman Sachs believes that investors should be snapping up South32 Ltd (ASX: S32) shares while they are cheap. This morning, the broker upgraded the mining giant's shares to a buy rating with a $3.80 price target. The broker said: "GS bullish copper, aluminium, zinc and met coal (~65% of S32 NTM EBITDA): leading to improving FCF in FY25 (yield of ~10%) and forecast strong recovery in S32's EBITDA (+50%) in FY25."
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 day of trade after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.25% to US$2,028.1 an ounce. Traders appear nervous ahead of the release of US inflation data.
Regis Resources downgraded
Goldman Sachs thinks that Regis Resources Ltd (ASX: RRL) shares are close to being fully valued now. This morning, the broker downgraded the gold miner's shares to a neutral rating with a $2.25 price target. It said: "With RRL's low priced gold hedges now closed, we see more limited near-term catalysts for the stock, with double-digit FCF yields now more priced in on a P/NAV basis, and downgrade RRL to Neutral."
