5 things to watch on the ASX 200 on Wednesday

It looks set to be a difficult day for Aussie investors.

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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:

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).

Motley Fool contributor James Mickleboro has positions in CSL, Seek, Treasury Wine Estates, and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL, Seek, and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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