On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session, slipping slightly into the red. The benchmark index fell slightly to 8,949.4 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 to fall
The Australian share market looks set to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 69 points or 0.75% lower. In the United States, the Dow Jones fell 0.6%, the S&P 500 dropped 0.6%, and the Nasdaq also fell 0.6%.
Oil prices rise
It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$89.59 a barrel and the Brent crude oil price is up 3.5% to US$98.83 a barrel. This appears to have been driven by doubts over US-Iran peace talks.
BHP Q3 update
All eyes will be on BHP Group Ltd (ASX: BHP) shares on Wednesday when the mining giant releases its third-quarter update. According to a note out of Morgans, its analysts are forecasting WAIO shipments of 67.5Mt. This will be down 1% on the prior corresponding period and 12% quarter on quarter due to the impacts of Cyclone Narelle. The broker will also be looking out for updates on its diesel supply.
Gold price drops
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.2% to US$4,720.6 an ounce. A stronger US dollar and inflation concerns weighed on the precious metal. Northern Star will also be releasing its quarterly update.
Buy Hub24 shares
Bell Potter thinks investors should be buying Hub24 Ltd (ASX: HUB) shares following their 8% decline on Tuesday. This morning, the broker has retained its buy rating on the investment platform provider's shares with a trimmed price target of $110.00 (from $120.00). It said: "Following the update we have downgraded our EPS estimates -1%/-2%/-2% with the miss dampened from mark-to-market impacts. FY27 Platform FUA guidance of $160- 170bn remains in play, with revised forecasts landing on the lower end of that range. A pickup in sentiment would likely push outcomes the other way. Acquisition of the superannuation fund trustee is also expected to have a limited influence on EBITDA line. For these reasons, we expect the multiple gap to peers can close over time."
