On Tuesday, the S&P/ASX 200 Index (ASX: XJO) bounced back from Monday's selloff with a decent gain. The benchmark index rose 0.5% to 6,998.3 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 give back yesterday's gains 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 63 points or 0.9% lower this morning. On Wall Street, the Dow Jones fell 0.95%, the S&P 500 dropped 1.1%, and the Nasdaq tumbled 1.1%. Rate hike concerns continue to weigh on sentiment.
Oil prices sink
Energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 5% to US$92.17 a barrel and the Brent crude oil price has fallen 5.4% to US$99.44 a barrel. Traders were selling oil amid concerns that rising inflation could impact fuel demand.
Harvey Norman results
The Harvey Norman Holdings Limited (ASX: HVN) share price will be on watch on Wednesday when the retail giant releases its full year results. According to a note out of Citi, its analysts are expecting the company to report a profit after tax of $614 million. This is broadly in line with the market consensus estimate of $614.6 million.
Gold price lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.8% to US$1,735.7 an ounce. This was driven by markets betting on the US Federal Reserve being aggressive with its rate hikes.
Shares going ex-dividend
A large number of ASX 200 shares are due to trade ex-dividend this morning and could drop into the red. This includes Bega Cheese Ltd (ASX: BGA), Blackmores Ltd (ASX: BKL), Iress Ltd (ASX: IRE), OZ Minerals Limited (ASX: OZL), Tabcorp Holdings Limited (ASX: TAH), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW). The latter will pay eligible shareholders its fully franked 53 cents per share final dividend on 27 September.
