On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.45% to 7,953.2 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to rise on Wednesday despite a relatively poor session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher. On Wall Street, the Dow Jones was up 0.5%, but the S&P 500 fell 0.5% and the Nasdaq dropped 1.3%.
Oil prices fall again
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 continued to drop overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$75.05 a barrel and the Brent crude oil price is down 1% to US$78.95 a barrel. Oil prices have hit their lowest levels since early June on demand concerns.
Rio Tinto half-year results
Rio Tinto Ltd (ASX: RIO) shares will be on watch today when the mining giant releases its half year results. According to a note out of Goldman Sachs, its analysts are forecasting Rio Tinto to report underlying EBITDA of US$12.4 billion. This is a touch short of the consensus estimate of US$12.5 billion. Underlying earnings of US$5.8 billion and an interim dividend of US$1.79 per share are also expected by Goldman.
Gold price rises
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 stormed higher overnight. According to CNBC, the spot gold price is up 1.2% to US$2,406.6 an ounce. Traders appear optimistic that the US Federal Reserve will soon announce rate cut plans.
Buy Woolworths shares
Woolworths Group Ltd (ASX: WOW) shares dropped into the red on Tuesday after announcing the exit of its Australian supermarkets CEO. Goldman Sachs isn't concerned and continues to believe that its shares are undervalued. It notes that "discussions with industry participants suggests that the talent pool in more traditional supermarket retail/commercial operations is deep, suggesting options for filling the post of MD of Woolworth Supermarkets." Goldman has retained its buy rating and $40.20 price target on its shares.
