On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and slipped into the red. The benchmark index fell slightly to 8,541.1 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to rise on Wednesday following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% higher this morning. In the United States, the Dow Jones was up 0.8%, but the S&P 500 slipped 0.1% and the Nasdaq dropped 0.8%.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$65.73 a barrel and the Brent crude oil price is up 1% to US$67.41 a barrel. Traders were buying oil ahead of a meeting by OPEC.
Tech rotation
All eyes will be on ASX 200 tech shares likes Life360 Inc. (ASX: 360) and WiseTech Global Ltd (ASX: WTC) on Wednesday after US investors rotated out of large cap tech stocks overnight and into the beaten down healthcare sector. This could bode well for the likes of CSL Ltd (ASX: CSL) and Neuren Pharmaceuticals Ltd (ASX: NEU).
Gold price jumps
It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price jumped overnight. According to CNBC, the gold futures price is up 1.2% to US$3,348.6 an ounce. Traders were buying the safe haven asset after Trump's tax cut and spending bill passed through the US Senate.
Lovisa shares downgraded
Analysts at Bell Potter think that Lovisa Holdings Ltd (ASX: LOV) shares are fully valued. This morning, the broker has downgraded the fashion jewellery retailer's shares to a hold rating with a $31.00 price target. It said: "While we believe the trends into the result appear relatively supportive and upgrade our forecasts (NPAT forecasts +1.7%/+1.9%/+2.2% for FY25/26/27e), we continue to remain below Consensus. We consider the risks around the fast-growing competitive environment and downside risks associated with potential costs related to the broader group's new brand growth initiatives. We downgrade our rating to HOLD."
