5 things to watch on the ASX 200 on Wednesday

It looks set to be a tough session for Aussie investors today.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged higher. The benchmark index rose 0.85% to 7,829.7 points.

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

ASX 200 expected to fall

It looks set to be a tough day for the Australian share market on Wednesday despite another positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.6% lower. On Wall Street, the Dow Jones was down 0.1%, but the S&P 500 rose 0.1% and the Nasdaq climbed 0.15%. The latter two closed at record highs after the US Fed suggested that holding rates high for too long could impact economic growth.

Oil prices fall

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices dropped again overnight. According to Bloomberg, the WTI crude oil price is down 0.85% to US$81.62 a barrel and the Brent crude oil price is down 1.1% to US$84.84 a barrel. Easing concerns about Tropical Storm Beryl weighed on prices.

Buy Telstra shares

The Telstra Group Ltd (ASX: TLS) share price could be good value according to analysts at Goldman Sachs. In response to news that the telco giant is lifting its mobile prices by $2 to $4, the broker has reiterated its buy rating with an improved price target of $4.30. It commented: "We estimate the postpaid plan changes to drive a blended A$2.50 ARPU [average revenue per user] increase for Telstra. Adjusting for GST, consumer mix (i.e. 2/3 of base) and c.9 month impact, we expect this to contribute $1.14 of ARPU growth, before any potential spin-down."

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch following a decent night for the gold price. According to CNBC, the spot gold price is up 0.35% to US$2,339.5 an ounce. Optimism over interest rate cuts in the United States boosted the precious metal.

Insignia shares on watch

Insignia Financial Ltd (ASX: IFL) shares will be on watch today after the financial services company denied media speculation that it was a private equity target. The company, formerly known as IOOF, saw its shares close almost 14% higher on Tuesday, prompting a price query by the ASX. In response to the query, Insignia commented: "Recent press article published Tuesday 9 July 2024 at 12:45pm in AFR Street Talk "Insignia calls in Citi as PE circles: Geoff Lloyd around the hoop" written by Sarah Thompson, Kanika Sood and Emma Rapaport. Citi has not been engaged to field any offers and the company is not aware of any offer."

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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