On Tuesday, the S&P/ASX 200 Index (ASX: XJO) slipped into the red. The benchmark index ended the day 0.15% lower at 7,603.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to sink
The Australian share market looks set for a very red day on Wednesday after a hotter than expected inflation reading in the US spooked investors. According to the latest SPI futures, the ASX 200 is expected to open the day 106 points or 1.4% lower. In late trade on Wall Street, the Dow Jones is down 1.8%, the S&P 500 has fallen 1.8%, and the Nasdaq is 2.1% lower.
Oil prices rise
It could still be a good session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$78.01 a barrel and the Brent crude oil price is up 1.1% to US$82.90 a barrel. Oil prices have been on a good run amid tensions in the Middle East.
Computershare results
The Computershare Ltd (ASX: CPU) share price will be on watch today after the company released its half-year results. The administration services company reported a 6% increase in management revenue to $1.6 billion and a 23% jump in management earnings per share to 54.8 cents. This was in line with the market's expectations.
Gold price tumbles
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a difficult session on Wednesday after the gold price sank overnight. According to CNBC, the spot gold price is down 1.4% to US$2,005.4 an ounce. Traders were selling gold in response to the higher than expected inflation reading.
CBA results
Commonwealth Bank of Australia (ASX: CBA) shares will be on watch on Wednesday when the banking giant releases its half year results. The market is expecting Australia's largest bank to report a first half cash profit of $4,972 million. This will be down from last year's record half-year cash profit of $5,153 million.
