On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a tough session and dropped deep into the red. The benchmark index fell 0.7% to 8,896.2 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 rise
The Australian share market looks set to rise on Wednesday despite a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.25% higher this morning. In the United States, the Dow Jones was up a fraction, but the S&P 500 fell 0.6% and the Nasdaq dropped 1.45%.
Oil prices drop
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$62.36 a barrel and the Brent crude oil price is down 1.1% to US$65.84 a barrel. Traders were selling oil after US-Ukraine talks sparked hopes of a peace deal and easing Russian sanctions.
Result releases
Earnings season is rolling on with plenty more ASX 200 shares releasing their results on Wednesday. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), corporate travel specialist Corporate Travel Management Ltd (ASX: CTD), lottery operator Lottery Corporation Ltd (ASX: TLC), and toll road operator Transurban Group (ASX: TCL).
Gold price falls
It looks set to be a subdued session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.55% to US$3,359.1 an ounce. The prospect of a Russia-Ukraine peace deal appears to be behind this.
CSL shares downgraded
In response to its full year results, the team at Bell Potter has downgraded CSL Ltd (ASX: CSL) shares to a hold rating with a reduced price target of $240.00 (from $305.00). Commenting on its downgrade, the broker said: "While the market reaction to the FY25 result and strategic review was severe, we view the near-term outlook as challenging for CSL due to: underlying earnings growth below market expectations, underwhelming 2H25 Behring performance which has been the key pillar of growth for many years, delays to the assumed Behring margin recovery (to FY29), and uncertainty around FY27/28 forecasts of the demerged entity at this time."
