5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and charged higher. The benchmark index rose 0.65% to 7,009.7 points.

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

ASX 200 expected to sink

The Australian share market looks set to have a day to forget on Wednesday after Wall Street had its worst session since June 2020. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 162 points or 2.3% lower this morning. On Wall Street, the Dow Jones fell 3.9%, the S&P 500 dropped 4.3%, and the Nasdaq sank 5.2%. Investors were panic selling after US inflation failed to cool.

Oil prices fall

Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued day after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$87.60 a barrel and the Brent crude oil price has fallen 0.55% to US$93.45 a barrel. Traders were selling oil following the release of disappointing US economic data.

Coles downgraded to sell

The Coles Group Ltd (ASX: COL) share price is overvalued according to analysts at Goldman Sachs. This morning the broker downgraded the supermarket giant’s shares to a sell rating with a $15.60 price target. Goldman made the move due to Coles being a laggard in digital transformation, which it expects to result in market share losses. It also fears that its entrance into a high investment cycle will further pressure margins.

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 overnight. According to CNBC, the spot gold price is down 1.55% to US$1,713.6 an ounce. Higher than expected inflation in the US has sparked fears of aggressive rate hikes.

ASX 200 shares going ex-dividend

A number of ASX 200 shares are due to trade ex-dividend this morning and could drop even more into the red. This includes appliance manufacturer Breville Group Ltd (ASX: BRG), horticulture company Costa Group Holdings Ltd (ASX: CGC), and fashion jewellery retailer Lovisa Holdings Ltd (ASX: LOV).

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’s why brokers are bullish on these ASX growth shares
• What’s driving ASX 200 consumer shares on Tuesday?
• Supermarket shakeup: Do Coles shares offer better dividends than Woolworths?
• 5 ASX All Ords shares going ex-dividend on Wednesday
• 62% upside: Expert names 2 ASX shares looking beautiful right now

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended COSTA GRP FPO and Lovisa Holdings Ltd. 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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