On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 7,322 points.
Will the market be able to bounce back from 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 fall on Wednesday following a difficult night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower this morning. On Wall Street, the Dow Jones was down 1%, the S&P 500 fell 1.6% and the Nasdaq sank 2%. Investors were hitting the sell button after US-based First Republic Bank's earnings release reignited concerns about the sector.
Oil prices tumble
It could be a tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$77.11 a barrel and the Brent crude oil price has fallen 2.4% to US$80.72 a barrel. This was driven by concerns that rising interest rates could slow economic growth, impacting oil demand.
BHP named as a buy
The team at Morgans has responded reasonably positively to the BHP Group Ltd (ASX: BHP) quarterly update. Its analysts have retained their add rating with a slightly trimmed price target of $50.40. They commented: "3Q23 operational result that was in-line with our estimates while trailing consensus in some areas. Already in accumulate territory, further market jitters could uncover an attractive buying opportunity."
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.5% to US$2,009.4 an ounce. The precious metal rose on banking sector concerns.
Buy Telstra shares: Goldman Sachs
The Telstra Group Ltd (ASX: TLS) share price could be great value according to Goldman Sachs. This morning, the broker has reiterated its buy rating with an improved price target of $4.70. Goldman has boosted its earnings estimates to reflect its belief that postpaid mobile plan prices will increase by the full CPI rate (7%), which is more than Goldman was expecting.
