On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged lower. The benchmark index dropped 0.1% to 7,887.9 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 sink
It looks set to be a difficult session for the Australian share market on Wednesday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.5% lower. In late trade on Wall Street, the Dow Jones is down 0.9%, the S&P 500 has fallen 0.75%, and the Nasdaq is 1% lower. Interest rate cut doubts are behind these declines.
Oil prices surge
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a great session after oil prices surged overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$85.19 a barrel and the Brent crude oil price is up 1.8% to US$88.98 a barrel. Increasing geopolitical tensions sent oil prices to their highest levels since October.
Gold price breaks record
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session on Wednesday after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.7% to US$2,295.6 an ounce. Concerns over rising tensions in the Middle East helped drive the precious metal to a new record high.
Paladin Energy rated as a buy
The Paladin Energy Ltd (ASX: PDN) share price is good value according to analysts at Bell Potter. This morning, the broker retained its buy rating on the uranium miner's shares with an improved price target of $1.65. It said: "Our target price for PDN lifts slightly to $1.65/sh (previously $1.60/sh) on the restart of production. With a line-of sight to first revenue and cashflow we have removed the speculative rating and maintain our Buy recommendation."
Dividend payday
A number of ASX 200 shares will be rewarding their shareholders with dividend payments on Wednesday. Among the companies paying dividends are biotechnology giant CSL Ltd (ASX: CSL), financial services company Insignia Financial Ltd (ASX: IFL), job listings giant Seek Ltd (ASX: SEK), wine company Treasury Wine Estates Ltd (ASX: TWE), and engineering company Worley Ltd (ASX: WOR).
