5 things to watch on the ASX 200 on Wednesday

Will it be a better day for Aussie investors? Let's find out.

Contented looking man leans back in his chair at his desk and smiles.

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 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.

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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Eagers Automotive Ltd. 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 young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Playside Studios, Pro Medicus, Strike Energy, and Winsome shares are charging higher

These shares are having a good session on Tuesday. But why?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Best Shares

4 ASX 200 shares being scooped up by insiders

Insiders at four companies have made notable purchases recently.

Read more »

Kid on a skateboard with cardboard wings soars along the road.

ASX growth stock on the cusp of profitability: My multibagger pick

I'm hoping to buy this small-cap stock and turn $5,000 into $20,000.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
Broker Notes

ASX investors may choose supermarkets over Wesfarmers shares after ACCC inquiry: broker

Goldman Sachs says ASX supermarket shares are trading at attractive valuations.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

One ASX stock to buy and one to sell

Goldman Sachs thinks one of these stocks is a buy and one is a sell.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

5 things to watch on the ASX 200 on Tuesday

Another good session is expected for Aussie investors today.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.

Forget lottery tickets, I'd buy these ASX shares instead

I'd buy these two shares over a Powerball ticket any day.

Read more »

A businessman hugs his computer and smiles.

If I had to own only one ASX 200 share forever, this would be it

This is one of my portfolio’s biggest positions.

Read more »