On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.25% to 8,956.8 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to edge lower on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. In late trade in the United States, the Dow Jones was is down 0.2%, the S&P 500 is 0.35% lower, and the Nasdaq is down 0.6%.
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 0.5% to US$62.01 a barrel and the Brent crude oil price is up 0.4% to US$65.72 a barrel. Oil prices have been recovering this week after OPEC made a smaller than expected increase to its output.
Transurban AGM
Annual general meeting season is here and Transurban Group (ASX: TCL) will be holding its meeting in Melbourne later today. It is possible the toll road operator will provide the market with a trading update at its meeting. So, investors may want to keep an eye on its shares during Wednesday's session.
Gold price surpasses $4,000
It looks set to be another 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 broke another record overnight. According to CNBC, the gold futures price is up 0.7% to US$4,003.8 an ounce. This was the first time the precious metal has hit $4,000.
Buy Mesoblast shares
Mesoblast Ltd (ASX: MSB) shares are undervalued according to analysts at Bell Potter. This morning, the broker has retained its buy rating on the biotechnology company's shares with an improved price target of $4.00. This follows news that the CMS in the US has announced a specific J-Code for Ryoncil for billing and reimbursement. It said: "Next catalyst for MSB – September quarter revenue due to be published at the end of the month. We expect Ryoncil revenues of ~US$13m, however, the December quarter is now shaping up as the breakout period following announcement of the J-Code. We retain our Buy (Speculative) recommendation increasing the valuation to $4.00 (from $3.50). The quarterly cash flow is also expected to show a large reduction in cash burn as cash inflows from product sales of Ryoncil commence."
