5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and dropped into the red. The benchmark index fell 0.3% to 7,766.7 points.

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

ASX 200 expected to fall

It looks set to be another subdued day for the Australian share market on Wednesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.6% lower. On Wall Street, the Dow Jones fell 0.55%, the S&P 500 was flat, and the Nasdaq pushed 0.6% higher. The latter hit a record high and rose beyond 17,000 points for the first time.

Oil prices surge

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a great session after oil prices surged overnight. According to Bloomberg, the WTI crude oil price is up 3.1% to US$80.15 a barrel and the Brent crude oil price is up 1.65% to US$84.47 a barrel. Traders were feeling confident ahead of the highly anticipated OPEC+ meeting.

Santos supply agreement

The Santos Ltd (ASX: STO) share price will be on watch today. That’s because after the market close on Tuesday, the energy company announced a binding long-term LNG supply and purchase agreement with Hokkaido Gas. The long-term agreement will supply up to approximately 0.4 million tonnes per annum of LNG for 10 years, commencing in 2027, from Santos’ LNG portfolio on a delivered ex-ship basis.

Gold price races higher

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good day after the gold price raced higher overnight. According to CNBC, the spot gold price is up 1.1% to US$2,359.2 an ounce. A softer US dollar boosted the precious metal.

Buy Pro Medicus shares

Pro Medicus Limited (ASX: PME) shares are good value according to analysts at Goldman Sachs. In response to news that the health imaging technology company has won five new contracts worth $45 million, the broker has reiterated its buy rating with an improved price target of $136.00. This implies potential upside of 19% from current levels. It commented: “In our view, PME is well positioned into FY25 given a full year benefit of some large and high profile contracts, in addition to the accelerating frequency and size of new contract wins.”

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 positions in Pro Medicus and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.