On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled lower. The benchmark index fell 0.6% to 8,793.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to open flat
The Australian share market looks set for a subdued session on Wednesday despite a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day largely flat. In the United States, the Dow Jones was up 0.4%, the S&P 500 rose 0.3%, and the Nasdaq pushed 0.4% higher.
Oil prices rise
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.7% to US$62.69 a barrel and the Brent crude oil price is up 0.6% to US$66.43 a barrel. Traders were bidding oil prices higher after Israel fired a missile into Qatar.
Shares going ex-dividend
Another group of ASX 200 shares are going ex-dividend today and are likely to trade lower. This includes logistics solutions company Brambles Ltd (ASX: BXB), languages testing and student placement company IDP Education Ltd (ASX: IEL), and private health giant Medibank Private Ltd (ASX: MPL). The latter will be paying its shareholders a fully franked 10.2 cents per share final dividend next month on 9 October.
Gold price softens
It looks set to be a slow session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price pulled back overnight. According to CNBC, the gold futures price is down 0.2% to US$3,670.5 an ounce. Traders appear to have been taking profit after the precious metal hit a record high.
Capricorn shares upgraded
Capricorn Metals Ltd (ASX: CMM) shares could be heading higher according to Bell Potter. This morning, the broker has upgraded the gold miner's shares to a buy rating (from hold) with an improved price target of $13.10 (from $10.80). It made the move on valuation grounds, highlighting a disconnect between US and Aussie gold stocks. The broker said: "The underperformance of Aussie gold equities has been getting our attention over the last couple of months. Specifically, the disconnect that has emerged between ASX-listed producers and the North American / global names that dominate the offshore indices."
