On Tuesday the S&P/ASX 200 Index (ASX: XJO) had a day to forget. The benchmark index sank 1.1% to 7,414.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
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ASX 200 expected to fall again
The Australian share market looks set for another 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 8 points or 0.1% lower. In late trade on Wall Street, the Dow Jones is down 0.95%, the S&P 500 has fallen 0.65%, and the Nasdaq is 0.55% lower.
Oil prices drop
It could be a subdued session for ASX 200 energy shares 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 0.75% to US$72.16 a barrel and the Brent crude oil price is down 0.1% to US$78.05 a barrel. A stronger US dollar offset Middle East tensions.
IDP Education shares named as a buy
Goldman Sachs thinks investors should be snapping up IDP Education Ltd (ASX: IEL) shares while they are down. According to the note, the broker has reiterated its buy rating on the language testing and student placement company's shares with a trimmed price target of $27.60. It said: "News flow may continue to be choppy, however IEL's fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings."
Gold price falls
ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price fell overnight. According to CNBC, the spot gold price is down 1% to US$2,031.3 an ounce. A stronger US dollar and hawkish US Fed comments put pressure on the gold price.
Buy Rio Tinto shares
Mining giant Rio Tinto Ltd (ASX: RIO) could be in the buy zone according to Goldman Sachs. In response to its quarterly update, the broker has retained its buy rating with a slightly trimmed price target of $140.50. It said: "RIO reported a broadly in-line 4Q23 result with iron ore shipments of 86.3Mt, +3% QoQ (vs. GSe 86.9Mt), taking full year Pilbara shipments to 332Mt vs guidance toward the top end of the 320-335Mt range."
