On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged into the red. The benchmark index fell slightly to 8,070.6 points.
Will the market be able to 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 37 points or 0.45% higher this morning. In the United States, the Dow Jones was down 0.95%, the S&P 500 fell 0.8%, and the Nasdaq dropped 0.9%.
Oil prices rebound
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$58.86 a barrel and the Brent crude oil price is up 2.8% to US$61.92 a barrel. Traders were buying oil amid signs of more demand in Europe and China.
Sell Computershare shares
Computershare Ltd (ASX: CPU) shares are overvalued according to analysts at Goldman Sachs. This morning, the broker has downgraded this share registry company's shares to a sell rating with a $37.50 price target. It said: "We downgrade CPU to Sell noting: 1) MI expected to be a material headwind: Economically, CPU remains very sensitive to yields (hedges reduce CPU's short term sensitivity) with MI a substantial share of EBIT. We adopt GS baseline rate cut forecasts, however, market pricing & probability weighted outcomes are skewed to greater rate cuts; (This suggests low to mid single digit earnings downside risk).
Gold price races higher
It could be another decent session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price raced higher again overnight. According to CNBC, the gold futures price is up 3.5% to US$3,440 an ounce. Traders were buying gold ahead of the US Federal Reserve meeting.
NAB results
The National Australia Bank Ltd (ASX: NAB) share price will be on watch on Wednesday when the banking giant releases its half year results. According to a note out of Macquarie, its analysts are is forecasting total operating income of $10,329 million, a net profit of $3,490 million, and a fully franked interim dividend of 85 cents per share.
