5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its intraday gains to finish the day a fraction higher. The benchmark index rose 4.1 points to 6,606.3 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower this morning. On Wall Street, the Dow Jones fell 0.6%, the S&P 500 dropped 0.9%, and the Nasdaq tumbled 0.95%. Investors were selling stocks ahead of the release of a key US inflation report.

Oil prices crash

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 8.1% to US$95.64 a barrel and the Brent crude oil price has sunk 7.5% to US$99.10 a barrel. Demand concerns weighed heavily on prices.

IDP Education rated as a buy

The IDP Education Ltd (ASX: IEL) share price has major upside potential according to analysts at Goldman Sachs. This morning the broker reiterated its buy rating with a $35.50 price target. It commented: “We view this as a structural growth story as international student markets open up. India is a key driver of this trend.”

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price tumbled lower again overnight. According to CNBC, the spot gold price is down 0.5% to US$1,723.2 an ounce. Looming rate hikes are weighing on the safe haven asset.

South32 sells royalties

The South32 Ltd (ASX: S32) share price will be on watch today after the miner announced the sale of four non-core base metals royalties to Anglo Pacific Group for US$185 million. This comprises US$103 million in cash and US$82 million in scrip. The latter will leave South32 with a ~16.9% interest in Anglo Pacific. These royalties are from third party interests in copper and nickel projects in Australia, USA and Chile.

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

• What are experts predicting will be the best-performing ASX sectors in FY23?
• Here are the top 10 ASX shares today
• What’s the outlook for ASX 200 energy shares in FY23?
• Has a turnaround already begun for ASX tech shares? Experts reveal the outlook for FY23
• Here are the 3 most heavily traded ASX 200 shares 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 positions in and has recommended Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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