On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and sank into the red. The benchmark index fell 0.5% to 8,778.7 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 to rise
The Australian share market looks set for a better day on Wednesday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.15% higher. In the United States, the Dow Jones rose 0.25%, the S&P 500 climbed 0.8%, and the Nasdaq stormed 1.5% higher.
Oil prices soften
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued day of trade after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.9% to US$70.10 a barrel and the Brent crude oil price is down 0.3% to US$72.92 a barrel. This capped Brent crude's largest monthly decline in over five years.
Buy Collins Foods shares
Bell Potter thinks Collins Foods Ltd (ASX: CKF) shares are good value. In response to its FY 2026 results, the broker has retained its buy rating on the quick-service restaurant operator's shares with an improved price target of $11.10 (from $10.80). It said: "We expect KFC Australia's recent momentum to continue, supported by a more resilient consumer, providing a near-term buffer against weaker trading in KFC Europe, which we view as temporary. We see the underlying German business as strong and expect CKF's position as the largest franchisee in Germany to be supported by Yum! Brands' endorsement, providing a platform for future acquisitions."
Gold price eases
ASX 200 gold shares including giants Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session on Wednesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.2% to US$4,031.8 an ounce. This latest weakness means the gold price is on course for its worst quarterly decline in 13 years, driven by rate hike concerns.
Buy Capricorn Metals shares
Capricorn Metals Ltd (ASX: CMM) shares could have plenty of upside according to Bell Potter. This morning, the broker has retained its buy rating on the gold miner's shares with an improved price target of $16.70. It commented: "CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~120kozpa to +300kozpa from two gold mines in WA, each with +10 year mine lives. CMM is run by a management team that has an excellent track record of delivery."
