On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.45% to 8,585.9 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 rebound on Wednesday following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.3% higher this morning. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is up 0.1%, and the Nasdaq is up 0.2%.
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 1.2% to US$58.18 a barrel and the Brent crude oil price is down 1% to US$61.88 a barrel. This was driven by Russia-Ukraine peace talk optimism.
Buy Mesoblast shares
Bell Potter thinks that Mesoblast Ltd (ASX: MSB) shares are good value right now. This morning, the broker has retained its buy rating and $4.00 price target on them. This implies potential upside of over 40% from current levels. It said: "The majority of the value A$4/share valuation is attached to approvals in paediatrics and adult GvHD. As the market begins to appreciate the sustainability of revenues and long term EPS growth, we expect the valuation will increase as more aggressive relative valuation models are employed."
Gold price rises
It could be a decent session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Wednesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.5% to US$4,238.5 an ounce. Traders were buying the precious metal ahead of the US Federal Reserve's interest rate decision.
Buy CAR Group shares
Another ASX 200 share that Bell Potter is bullish on is CAR Group Limited (ASX: CAR). This morning, the broker has retained its buy rating and $42.20 price target the auto listings company's shares. It said: "CAR's global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR continues to screens favourably on a risk-adjusted return basis when considering the stability of earnings growth against comparable ASX-listed classifieds platforms REA (Buy, TP:$244/sh) and SEK (Buy, TP:$31.45/sh); trading at a -24% discount presents a balanced opportunity to accumulate, in our view."
