On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and dropped into the red again. The benchmark index fell 0.1% to 8,255.6 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 sink
The Australian share market looks set to sink on Wednesday following a mixed session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 75 points or 0.9% lower. In late trade on Wall Street, the Dow Jones is down 0.5%, the S&P 500 is down 0.1%, and the Nasdaq is flat. Mining sector weakness weighed on global markets.
Oil prices edge higher
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a better session after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$68.26 a barrel and the Brent crude oil price is up 0.3% to US$72.03 a barrel. This reflects optimism ahead of the OPEC+ meeting.
CBA first quarter update
Commonwealth Bank of Australia (ASX: CBA) shares will be on watch on Wednesday. That's because Australia's largest bank will be releasing its first quarter update before the market open. With its shares trading at a record high, expectations are equally high for the banking giant's quarter. The consensus estimate is for cash earnings of approximately $2.5 billion for the three months.
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) look set to have a poor session after the gold price dropped again overnight. According to CNBC, the gold futures price is down 0.5% to US$2,606 an ounce. The gold price hit a two-month low due to a stronger US dollar.
Brickworks shares upgraded
Brickworks Limited (ASX: BKW) shares could be undervalued according to analysts at Bell Potter. This morning, the broker upgraded the building products company's shares to a buy rating (from hold) with an improved price target of $32.00 (from $31.00). The broker said: "We view the pullback in share price as an opportunity to get BMats and Property at or close to the bottom of the cycle. We upgrade our rating to Buy with a PT of $32.00ps."
