On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 8,803.9 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 open slightly lower
The Australian share market looks set for subdued session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. In late trade in the United States, the Dow Jones is down 0.25%, the S&P 500 is down 0.3%, and the Nasdaq has dropped 0.75%.
Oil prices race higher
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day of trade on Wednesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$70.53 a barrel and the Brent crude oil price is up 3.1% to US$74.22 a barrel. This followed reports of attacks on tankers in the Strait of Hormuz.
Buy Netwealth shares
The team at Bell Potter continues to see value in Netwealth Group Ltd (ASX: NWL) shares. This morning, in response to a quarterly update, the broker has retained its buy rating and $30.00 price target on the investment platform provider's shares. It said: "Our Buy rating is unchanged, and we upgrade our net flow estimates +8% FY27-29. Building in margin guidance prompts us to downgrade EPS -7%/-4% and we leave headroom on the FUA target. NWL is looking to replicate EPS growth. The mandate win is the first example of a catalyst, independent of any potential vendor attrition."
Gold price softens
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session on Wednesday after the gold price softened overnight. According to CNBC, the gold futures price is down 0.35% to US$4,153 an ounce. Rising oil prices have sparked fears of rising inflation and interest rate hikes.
A2 Milk shares go ex-dividend
A2 Milk Company Ltd (ASX: A2M) shares are going ex-dividend this morning and could trade lower. Last month, the infant formula company declared a fully franked special dividend of 28.8 cents per share. Based on its last close price of $7.37, this represents an attractive 3.9% dividend yield. Eligible shareholders can look forward to receiving this dividend later this month on 24 July.
