On Tuesday, the S&P/ASX 200 Index (ASX: XJO) fought hard but ended the session in the red. The benchmark index fell 0.15% to 8,848.8 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
The Australian share market looks set to edge lower on Wednesday despite a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points lower this morning. In the United States, the Dow Jones was up 0.2%, the S&P 500 rose 0.4%, and the Nasdaq pushed 0.3% higher.
Oil prices drop
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices dropped again overnight. According to Bloomberg, the WTI crude oil price is down 1.5% to US$62.50 a barrel and the Brent crude oil price is down 1.3% to US$67.06 a barrel. Traders were selling oil ahead of an expected increase in OPEC supply and the resumption of exports from Iraq's Kurdistan region.
Shares going ex-dividend
A couple of shares will be going ex-dividend this morning and could trade lower. This includes property company Cedar Woods Properties Ltd (ASX: CWP) and furniture retailer Nick Scali Limited (ASX: NCK). Cedar Woods will be paying a 19 cents per share fully franked dividend on 31 October and Nick Scali will be paying a fully franked 33 cents per share dividend a few days earlier on 28 October.
Gold price rises
It looks set to be a positive session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price pushed higher again. According to CNBC, the gold futures price is up 0.75% to US$3,884.1 an ounce. This was driven by concerns over a potential US government shutdown.
Buy Paradigm shares
Paradigm Biopharmaceuticals Ltd (ASX: PAR) shares could be a good option for investors with a high risk tolerance according to Bell Potter. This morning, the broker has retained its speculative buy rating on the biotechnology company's shares with a trimmed price target of 65 cents. Speaking about its potential osteoarthritis therapy, it said: "In the US along the incidence of moderate to severe osteoarthritis is estimated at 30m persons. The pricing of the drug will ultimately be determined by the economic benefit associated with its use as well as the cost of other therapies. The conservative estimate is US$2,500 per year which places the addressable market in the tens of billions of US$."
