5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was sold off and sank deep into the red. The benchmark fell 1.5% to 7,024.3 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound strongly on Wednesday following a positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 78 points or 1.1% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.35%, the S&P 500 is up 0.2%, and the Nasdaq is up 0.1%.

Oil prices rise

It could be a decent day for energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$75.80 a barrel and the Brent crude oil price has risen 0.1% to US$79.85 a barrel. Oil prices were boosted by a softer US dollar and a plan to restock petroleum reserves.

Qantas rated as a buy

The Qantas Airways Limited (ASX: QAN) share price could still be great value according to analysts at Goldman Sachs. This morning, its analysts have reiterated their conviction buy rating and $8.20 price target on its shares. It said: “With the market capitalization 4% above pre-COVID levels and EV (based on last reported net debt) 12% below pre-COVID, we believe the stock is not appropriately pricing QAN’s improved earnings capacity.”

Gold price jumps

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.6% to US$1,826.2 an ounce. A softer US dollar gave the precious metal a boost.

Buy the REA dip

The REA Group Limited (ASX: REA) share price was sold off on Tuesday and Goldman Sachs thinks investors should be taking advantage of the decline. The broker has reiterated its conviction buy rating with a trimmed price target of $158.00. The broker said: “Following the recent decline in share prices, REA/DHG are now trading on 19x/13x 12mf EBITDA, which we see as very attractive vs. historical levels (>20% discount).”

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

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More reading

• Here are the top 10 ASX 200 shares today
• I’d buy these 3 ASX 200 shares in 2023 and hold them for a decade
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Guess which ASX 200 director just sold off $27 million worth of their company’s shares
• Why is the Woodside share price smashing the ASX 200 on Tuesday?

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 recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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