On Tuesday, the S&P/ASX 200 Index (ASX: XJO) came under pressure after the RBA made a shock rate hike. The benchmark index fell 0.9% to 7,267.4 points.

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

ASX 200 expected to tumble again

The Australian share market looks set to fall again on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 44 points or 0.6% lower this morning. On Wall Street, the Dow Jones was down 1.2%, the S&P 500 dropped 1.2% and the Nasdaq fell 1.1%.

Oil prices sink

It could be a very tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 5.5% to US$71.50 a barrel and the Brent crude oil price has sunk 5.2% to US$75.16 a barrel. This was driven by worries about a U.S. debt default and expectations that fuel demand could suffer if central banks in the U.S. and Europe raise interest rates again this week.

Buy Woolworths shares

The Woolworths Group Ltd (ASX: WOW) share price could be great value according to Goldman Sachs. This morning, the broker has reiterated its conviction buy rating with an improved price target of $42.80. In response to its third-quarter update, the broker said: “We tweak our FY23-25e group sales by ~+1% and NPAT by 0.4%-1.1% respectively. This is due to slightly higher sales across all key business segments while our margin views remain intact. Our updated forecasts imply FY22-25e ~3.4% sales CAGR and ~9.6% CAGR for EBIT/NPAT respectively.”

Gold price jumps

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price jumped overnight. According to CNBC, the spot gold price is up 1.6% to US$2,024.2 an ounce. The market selloff appears to have increased demand for safe haven assets.

Megaport shares a buy

The team at Morgans believes that Megaport Ltd (ASX: MP1) shares could be heading even higher after last week’s heroics. This morning, the broker retained its add rating with an improved price target of $9.00. It highlights that “management’s guidance for FY23 and FY24 was well ahead of consensus expectations.”

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

• ASX 200 energy shares to fall after oil prices collapse
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• ASX 200 plunges as RBA surprises investors with another interest rate boost
• Why Beach, Computershare, Endeavour, and Qantas shares are dropping today

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 positions in and has recommended Telstra Group. 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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