On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and raced higher. The benchmark index rose 1.15% to 8,604.7 points.
Will the market be able to build on 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 32 points or 0.35% lower. In the United States, the Dow Jones fell 0.65%, the S&P 500 dropped 0.65%, and the Nasdaq tumbled 0.85%.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.05% to US$108.59 a barrel and the Brent crude oil price is down 0.6% to US$111.45 a barrel. Traders were selling oil after US-Iran tensions eased slightly.
Catapult results
Catapult Sports Ltd (ASX: CAT) shares will be on watch on Wednesday when the sports technology company releases its full-year results. Bell Potter is expecting a strong result from Catapult this morning. It said: "The one figure where we see some upside risk is management EBITDA where the guidance is growth of approximately 50% which implies a figure of c.US$22.9m and we forecast US$23.0m whereas consensus appears to be only around US$22.4m. The other key metrics we expect to be consistent with the guidance of ACV b/w US133-134m (vs BPe US$133.6m), free cash flow excluding transaction costs b/w US$5-6m (vs BPe US$5.6m) and Rule of 40 >33% (vs BPe 44%/34% including/excluding IMPECT on a constant currency basis)."
Gold price falls
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 dropped overnight. According to CNBC, the gold futures price is down 1.5% to US$4,488.6 an ounce. Rising bond yields have weighed heavily on the precious metal.
Buy TechnologyOne shares
Bell Potter has named TechnologyOne Ltd (ASX: TNE) shares as a buy with a $32.25 price target following the enterprise software provider's half-year results. It commented: "With little change in our forecasts there is no change in our TP of $32.25 and we maintain our BUY recommendation. There is perhaps a lack of short term catalysts for the stock but we believe the stock should continue to perform well given it is in our view the best positioned tech stock on the ASX to benefit from rather than be disrupted by AI. We also see very little if any downside risk to the guidance given the high level of SaaS and recurring revenue (c.93% of total revenue in H1), good visibility and strong pipeline."
