On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.3% to 7,726.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
It looks set to be a positive day for the Australian share market on Wednesday following a good session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.4% higher. On Wall Street, the Dow Jones rose 0.3%, the S&P 500 pushed 0.5% higher, and the Nasdaq charged 0.75% higher.
Oil prices tumble
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$78.25 a barrel, and the Brent crude oil price is down 1% to US$82.64 a barrel. Traders were selling oil after the US Federal Reserve admitted that inflation has been stickier than expected in 2024.
Federal budget
The Federal Budget was announced last night and could have ramifications for some ASX 200 shares. Companies focusing on green energy, such as Fortescue Ltd (ASX: FMG), look set to benefit from the government's $19.7 billion pledge to turn Australia into a renewable energy power. There are also new tax incentives for critical minerals, including $8 billion for green hydrogen. Bunnings owner Wesfarmers Ltd (ASX: WES) could benefit from $4.3 billion of new housing expenditure funding.
Gold price pushes higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price charged higher overnight. According to CNBC, the spot gold price is up 0.8% to US$2,362.2 an ounce. Gold pushed higher despite the release of a hotter-than-expected inflation reading in the United States.
Buy AP Eager shares
The Eagers Automotive Ltd (ASX: APE) share price is good value according to analysts at Bell Potter. This morning, ahead of the release of the auto retailer's annual general meeting update next week, the broker has retained its buy rating on its shares with a trimmed price target of $14.75. This implies potential upside of 18% for investors over the next 12 months. In addition, the broker expects 5.9% fully franked dividend yields in FY 2024 and FY 2025.
