On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.35% to 8,393 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall again
The Australian share market looks set for a weak session on Wednesday following a subdued night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.2% lower. In late trade on Wall Street, the Dow Jones is down 0.1%, the S&P 500 is down 0.1%, and the Nasdaq is slightly lower.
Oil prices push higher
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.6% to US$68.80 a barrel and the Brent crude oil price is up 0.3% to US$72.37 a barrel. Oil prices have been rising this week on Chinese stimulus optimism.
Pilbara Minerals named as a buy
Now could be the time to buy Pilbara Minerals Ltd (ASX: PLS) shares according to analysts at Bell Potter. According to the note, the broker has upgraded the lithium miner's shares to a buy rating with a $2.95 price target. It said: "We upgrade our PLS recommendation to Buy (from Hold) on recent share price weakness. […] While we expect lithium prices to remain volatile, we hold a robust EV-demand driven long-term market outlook. We believe higher prices are required to incentivise new sources of supply to moderate our forecast shortfalls from 2026."
Gold price storms higher
It looks like it could be a good session for ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.2% to US$2,718 an ounce. Traders are buying the precious metal ahead of the release of US inflation data.
South32 update
South32 Ltd (ASX: S32) shares will be on watch on Wednesday after the miner released an update on its Mozal Aluminium operation in Mozambique. The mining giant advised that due to escalating civil unrest in East African country, the transport of raw materials to Mozal Aluminium is being impacted by road blockages. Management has implemented contingency plans to mitigate operational impacts but is withdrawing production guidance for Mozal Aluminium as it responds to the evolving situation.
