5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the month in a subdued fashion. The benchmark index fell 5 points to 7,476.7 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 rise on Wednesday following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 29 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.6%, the S&P 500 is up 0.9%, and the Nasdaq is 1.2% higher.

Oil prices mixed

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.75% to US$78.49 a barrel and the Brent crude oil price has fallen 0.5% to US$84.49 a barrel. The former was boosted by higher than expected US demand.

Beach upgraded

Another energy share that will be on watch today is Beach Energy Ltd (ASX: BPT). That’s because Morgans has just upgraded the energy producer’s shares to an add rating with a $1.81 price target. Although it was disappointed with its quarterly update, Morgans believes the worst is now priced in. It said: “We think that the bad news ahead of BPT is already largely in the price and we move to an ADD rating (from HOLD) on valuation upside.”

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.3% to US$1,929.1 an ounce. A softer US dollar gave the precious metal a lift.

Buy the Megaport dip

The Megaport Ltd (ASX: MP1) share price fell heavily on Tuesday following the release of the company’s quarterly update. While Goldman Sachs was disappointed with “the weakness in the operational trends,” it believes investors should buy the dip and has reiterated its buy rating with a trimmed price target of $8.10.

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
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why is the AMP share price smashing the ASX 200 on Tuesday?
• Why Bubs, Core Lithium, Megaport, and Pointsbet shares are crashing today
• Why Beach, Coles, Cronos Australia, and Woolworths shares are pushing higher

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 positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. 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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