5 things to watch on the ASX 200 on Wednesday

Here's what to expect on the ASX 200 today.

Business woman watching stocks and trends while thinking

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and crashed deep into the red. The benchmark index sank 1.8% to 7,612.5 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to fall again

It looks set to be another poor session for the Australian share market on Wednesday following a mixed night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 fell 0.2%, and the Nasdaq edged 0.1% lower.

Oil prices soften

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.15% to US$85.28 a barrel and the Brent crude oil price is down 0.2% to US$89.92 a barrel. Comments out of the US FDA regarding inflation appear to have weighed on oil prices.

Rio Tinto quarterly update

Rio Tinto Ltd (ASX: RIO) shares will be on watch on Wednesday when the mining giant releases its first quarter update. According to a note out of Goldman Sachs, its analysts are forecasting iron ore shipments of 75.5Mt for the three months. This will be down 12% from the previous quarter and 9% year on year. The consensus estimate is for iron ore shipments of 79.6Mt. Elsewhere, copper production is forecast to lift 13% to 181kt. This is higher than the consensus estimate of 171kt.

Gold price jumps again

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price pushed higher again overnight. According to CNBC, the spot gold price is up 0.95% to US$2,405.4 an ounce. Rising geopolitical risks boosted demand for the safe haven asset.

Buy Pro Medicus shares

The Pro Medicus Limited (ASX: PME) share price could be in the buy zone according to analysts at Goldman Sachs. This morning, the broker has initiated coverage on the health imaging company's shares with a buy rating and a $134.00 price target. Goldman commented: "We view PME as the clear incumbent technology leader in a growing market with a strong financial profile and significant AI upside."

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

More on Share Market News

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Core Lithium, Duratec, Galan Lithium, and Michael Hill shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A trio of ASX shares analysts huddle together in an office with computer screens all around them showing share price movements
Broker Notes

Why brokers just revised their outlook for these 4 top ASX All Ords shares

These four ASX All Ords companies were just re-rated by top brokers.

Read more »

Invest written on a notepad with Australian dollar notes and piggybank.

I'd invest $10,000 into these excellent ASX shares for the long term

I’m bullish about these top stocks.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Materials Shares

Why did this ASX All Ords stock just crash 24%?

What is weighing down this lithium stock today? Let's find out.

Read more »

Young woman using computer laptop with hand on chin thinking about question, pensive expression.

Should you buy Telstra stock on a pullback?

Is this telco a buy for value hunters?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Share Fallers

Why did the Core Lithium share price just crash 6%?

Investors are bidding down the Core Lithium share price today.

Read more »

Sports fans looking at smart phone representing surging pointsbet share price
Share Gainers

Guess which ASX All Ords share just rocketed 25% on an earnings upgrade

Investors are bidding up the ASX All Ords share following an improved FY 2024 earnings outlook.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
Mergers & Acquisitions

Are Star shares now rolling the dice on a rescue bid?

Rumour is that a US-based casino operator is ready to revamp this fallen star.

Read more »