5 things to watch on the ASX 200 on Wednesday

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

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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.

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