On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.25% to 6,629.3 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
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ASX 200 expected to fall
The Australian share market looks set to tumble on Wednesday following a volatile night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 1% lower this morning. On Wall Street, the Dow Jones fell 0.4%, the S&P 500 rose 0.2%, and the Nasdaq climbed 1.75%. The S&P 500 was down as much as 2% at one stage before rebounding.
Oil prices crash
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a very tough day after oil prices crashed. According to Bloomberg, the WTI crude oil price is down 8.15% to US$99.59 a barrel and the Brent crude oil price has sunk 9.3% to US$103.03 a barrel. Growing recession fears are to blame for this sharp decline.
GrainCorp goes ex-dividend
The GrainCorp Ltd (ASX: GNC) share price is likely to trade lower on Wednesday. This is due to the grain exporter's shares trading ex-dividend this morning for its latest dividend. Eligible shareholders can now look forward to receiving its bumper 24 cents per share fully franked interim dividend later this month on 21 July.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 1.9% to US$1,766.4 an ounce. A strong US dollar weighed on the safe haven asset.
Copper price sinks
BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could have a tough day after a number of commodities sank into the red amid recession fears. One of the worst performers was the price of copper, which fell by almost 5% to US$3.436 a pound. The chances of a US recession are now 38%, according to the latest forecasts from Bloomberg Economics.
