5 things to watch on the ASX 200 on Wednesday

Here's what to expect on the local market today.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and edged into the red. The benchmark index fell 0.15% to 7,851.7 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 better 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 19 points or 0.25% higher. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 pushed 0.25% higher, and the Nasdaq climbed 0.2%.

Oil prices fall

It could be a subdued session for ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.9% to US$79.06 a barrel and the Brent crude oil price is down 1% to US$82.88 a barrel. This appears to have been driven by lower geopolitical risks.

Telstra remains a buy

The Telstra Group Ltd (ASX: TLS) share price hit a multi-year low on Tuesday after the telco giant released an update. The team at Goldman Sachs has been looking over the update and sees both positives and negatives. Ultimately, though, the broker has retained its buy rating with a reduced price target of $4.25. It said: "Overall we revise TLS FY24-26 EBITDA -1% and EPS by -1% to -3%, reflecting the revised mobile outlook and broader restructure. Our 12m TP is -7% to A$4.25, given earnings and reduction in mobile EBITDA multiple to 6.0X (was 6.5X) on increased mobile uncertainty."

Gold price eases

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a soft session after the gold price eased overnight. According to CNBC, the spot gold price is down 0.4% to US$2,428.7 an ounce. A stronger US dollar weighed on the precious metal.

Webjet update

Webjet Ltd (ASX: WEB) shares will be in focus today when the travel agent releases its FY 2024 results. According to a note out of Goldman Sachs, its analysts are forecasting group total transaction value (TTV) of $5,635 million, revenue of $469 million, and underlying EBITDA of $190 million. The latter will be an increase of 40.7% year on year. The key driver of its growth is expected to be the WebBeds business. Goldman is forecasting segment TTV and EBITDA growth of 40% for FY 2024.

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. The Motley Fool Australia has positions in and has recommended Telstra Group. 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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