On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had one of its worst days of the year. The benchmark index sank 1.4% to 7,008.9 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 on Wednesday following a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 28 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.5%, the S&P 500 is up 1.15% and the Nasdaq is 1.5% higher.

Oil prices crash

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 4.7% to US$71.29 a barrel and the Brent crude oil price has dropped 4.2% to US$77.39 a barrel. Traders were selling oil after an in-line US inflation reading reignited fears over rate hikes and a potential financial crisis.

Qantas shares are a buy

The team at Goldman Sachs has reiterated its bullish view on Qantas Airways Limited (ASX: QAN) shares. The broker said: “We believe that the -7% share price reaction on results day (and the current share price) does not reflect the group’s improved earnings capacity.” It has a conviction buy rating and $8.30 price target on the airline operator’s shares.

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price ran out of steam and edged lower overnight. According to CNBC, the spot gold price is down 0.35% to US$1,909.8 an ounce. Rising bond yields halted gold’s recent surge.

ASX 200 shares going ex-div

A number of ASX 200 shares are going ex-dividend on Wednesday and could trade lower. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), auto retailer Eagers Automotive Ltd (ASX: APE), poultry producer Inghams Group Ltd (ASX: ING), and telco TPG Telecom Ltd (ASX: TPG). In respect to Eagers Automotive, last month it declared a record fully franked final dividend of 49 cents per share. This will now be paid at the end of the month on 31 March.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Qantas shares have dumped 7% in 3 days. Should I buy?
• Why has the Newcrest share price leapt 7% in under a week?
• Down 12% in a week, has the Woodside share price got further to fall?
• ASX 200 dives 2%, wiping out last of 2023 gains

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

from The Motley Fool Australia https://ift.tt/mlugnSj

• Stock Market