On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.4% to 8,657.8 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 slip
The Australian share market looks set to edge lower on Wednesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower. In the United States, the Dow Jones fell 0.25%, but the S&P 500 rose 0.6% and the Nasdaq jumped 1.2%.
Oil prices mixed
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 3.4% to US$93.29 a barrel and the Brent crude oil price is up 3.3% to US$99.29 a barrel. This was driven by concerns over rising tensions between the US and Iran.
Goodman shares given buy rating
In response to the third-quarter update from Goodman Group (ASX: GMG), Bell Potter has retained its buy rating on the industrial property giant's shares with a trimmed price target of $35.50. It said: "While we do have some question marks vis-à-vis leasing progress, extension of timelines and associated impact on earnings mix and booking of profits, the moat around the haves and have nots for scaled data centre players appears to be widening, recognising the scale and complexity of execution."
Gold price softens
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.3% to US$4,510 an ounce. This reflects concerns that higher fuel prices will drive inflation and push interest rates higher.
Buy Life360 shares
Bell Potter thinks Life360 Inc. (ASX: 360) shares are undervalued. This morning, the broker has retained its buy rating on the location technology company's shares with an improved price target of $33.00. It said: "Key focus for us is the Q2/H1 result in August and, firstly, a strong rebound in MAU growth but secondly, and more importantly, another quarter of strong paying circle growth where anything approaching or up around 200k again would be bullish in our view."
