On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped deep into the red. The benchmark index fell 0.9% to 8,813.7 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
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 12 points or 0.15% higher this morning. In late trade in the United States, the Dow Jones is down 0.7%, the S&P 500 is down 1.2%, and the Nasdaq has sunk 2%.
Oil prices fall
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.8% to US$60.55 a barrel and the Brent crude oil price is down 0.7% to US$64.44 a barrel. This was driven by oversupply concerns.
DroneShield reaches $200 million cash receipts
DroneShield Ltd (ASX: DRO) shares will be on watch on Wednesday after the counter drone technology company made an announcement relating to share options. It revealed that almost 44.5 million performance options were vested yesterday after it achieved its performance hurdle of $200 million cash receipts in a 12-month rolling period. DroneShield's CEO, Oleg Vornik, commented "Performance Options align the DroneShield team and its investors, enabling DroneShield to attract the best talent and incentivise performance, whilst reducing the cash burden on the Company as it continues to rapidly grow. We are pleased to reach this $200 million cash receipts 12-month milestone, and look forward to maximising performance for the remainder of this record year, and building a strong foundation for 2026 and beyond."
Gold price sinks
It looks set to be a difficult 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 tumbled overnight. According to CNBC, the gold futures price is down 1.6% to US$3,950.1 an ounce. A stronger US dollar weighed on the precious metal.
Sell Westpac shares
Westpac Banking Corp (ASX: WBC) shares are overvalued after breaking through the $40.00 barrier on Tuesday according to analysts at Morgans. It has retained its sell rating with a $31.30 price target. The broker said: "With the stock trading around all-time highs but with limited earnings growth over coming years we continue to recommend clients SELL overweight positions."
