On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.3% to 8,900.6 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 fall again
The Australian share market looks set to fall again on Wednesday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.4% lower this morning. In the United States, the Dow Jones was down 0.55%, the S&P 500 fell 0.7%, and the Nasdaq dropped 0.8%.
Oil prices charge higher
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.4% to US$65.54 a barrel and the Brent crude oil price is up 1.3% to US$69.03 a barrel. Concerns over Russian supply boost oil prices.
Shares going ex-dividend
Another group of ASX 200 shares are going ex-dividend today and could trade lower. This includes energy giant Origin Energy Ltd (ASX: ORG), private hospital operator Ramsay Health Care Ltd (ASX: RHC), healthcare company Sonic Healthcare Ltd (ASX: SHL), insurance broker Steadfast Group Ltd (ASX: SDF), and coal miner Whitehaven Coal Ltd (ASX: WHC). In respect to Origin Energy, it is rewarding shareholders with a 30 cents per share fully franked final dividend on 3 October.
Gold price rises
It looks likely to be a great session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price raced higher again overnight. According to CNBC, the gold futures price is up 2.4% to US$3,601 an ounce. This was driven by US rate cut bets increasing and concerns over economic risks.
Capricorn shares rated as a hold
Capricorn Metals Ltd (ASX: CMM) shares are fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating on the gold miner's shares with an improved price target of $10.80. This implies potential downside of 5% from current levels. It said: "CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~115kozpa to ~300kozpa from mid-FY27, from two gold mines in WA, each with +10 year mine lives and run by a management team that has an excellent track record of delivery. Our NPV-based valuation is up 16% to $10.80/sh. We retain our Hold recommendation."
