On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains and ended the day only a fraction higher. The benchmark index rose almost 0.1% to 7,860.4 points.
Will the market bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.5%, the S&P 500 is down 1%, and the Nasdaq is 1.6% lower.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$66.91 a barrel and the Brent crude oil price is down 0.7% to US$70.57 a barrel. Ukraine-Russia peace talks put pressure on oil prices.
Buy REA Group shares
Now could be the time to buy REA Group Ltd (ASX: REA) shares according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating with a lowered price target of $264.00. Bell Potter believes that recent share price weakness has created an opportunity for investors. It said: "We make no changes to our earnings forecasts but would anticipate some level of recovery in share price/relative valuation in the event the pending bid for DHG is unsuccessful. We remain Buy rated and continue to hold a positive long-term view of REA, with a cash flow profile able to sustain operational and capital expenditure to support its market leading position."
Gold price charges higher
It looks set to be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.25% to US$3,043.6 an ounce. Rising tensions in the Middle East gave the safe haven a boost.
New Hope rated as a sell
New Hope Corporation Ltd (ASX: NHC) shares are overvalued according to analysts at Goldman Sachs. This morning, the broker has responded to the coal miner's half year results by reiterated its sell rating with a trimmed price target of $4.30. It said: "Thermal Coal market to soften in 2025: our global commodity team forecasts lower thermal coal prices in 2025 primarily driven by softer global import demand, expanding supply, and continuous decarbonisation efforts."
