5 things to watch on the ASX 200 on Wednesday

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) started the shortened week in a very poor fashion. The benchmark index sank 2.1% to 7,318 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to have another bad day on Wednesday following a market selloff in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 110 points or 1.5% lower this morning. On Wall Street, the Dow Jones fell 2.4%, the S&P 500 dropped 2.8%, and the Nasdaq has crashed 3.95%. Investors were dumping equities on fears of an economic slowdown.

Oil prices rebound

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a better day after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 3.2% to US$101.63 a barrel and the Brent crude oil price has risen 2.7% to US$105.04 a barrel. Supply fears appear to have boosted prices.

South32 shares remain a buy

The South32 Ltd (ASX: S32) share price tumbled on Tuesday following the release of its quarterly update. The team at Goldman Sachs appear to see this as a buying opportunity. This morning the broker has retained its conviction buy rating with a trimmed price target of $5.70. Overall, while acknowledging that South32 has increased its cost guidance, Goldman was pleased with the company’s performance during the quarter.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.55% to US$1,906.5 an ounce. Economic growth and inflation concerns have supported the safe haven asset.

Mineral Resources tipped as a buy

The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Bell Potter. This morning the broker has retained its buy rating and $70.00 price target on the mining and mining services company’s shares. In response to its US$1 billion notes offering, the broker believes it is “ further confirmation of MIN’s commitment to the transformational portfolio of growth projects.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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