On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.65% to 8,710.7 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 again
The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.4% lower. In the United States, the Dow Jones fell 0.05%, the S&P 500 dropped 0.5%, and the Nasdaq tumbled 0.9%.
Oil prices rise
It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a solid session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.5% to US$99.63 a barrel and the Brent crude oil price is up 2.45% to US$110.86 a barrel. This follows news that Donald Trump was not pleased with Iran's proposal to reopen the Strait of Hormuz.
Woodside Q1 update
Woodside Energy Group Ltd (ASX: WDS) shares will be on watch today when the energy giant releases its first-quarter update. According to a note out of Macquarie, for the three months ended 31 March, its analysts are forecasting production of 43.7mmboe, sales volumes of 46.6mmboe, and revenue of US$3.09 billion.
Gold price sinks
ASX 200 gold shares 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 1.9% to US$4,606 an ounce. Soaring oil prices have sparked inflation and rate hikes fears.
Hold Whitehaven Coal shares
Bell Potter thinks Whitehaven Coal Ltd (ASX: WHC) shares are fully valued at current levels. In response to its third-quarter update, the broker has retained its hold rating and $8.10 price target on the coal miner's shares. It said: "We maintain a Hold recommendation. In the medium term, WHC are positioned to capitalise when coal markets sustainably improve with a diversified portfolio of assets in Queensland and New South Wales and strong organic growth optionality. We have a positive long term met coal outlook, driven by constrained supply and increased demand from steel producers reliant on seaborne met coal (i.e. India)."
