On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.55% to 7,450.7 points.
Will the market be able to build on this Wednesday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to tumble on Wednesday following a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower this morning. In the United States, the Dow Jones rose 0.2%, but the S&P 500 fell 0.3% and the Nasdaq dropped 0.4%.
Oil prices soften
It looks set to be a subdued session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$81.71 a barrel and the Brent crude oil price has fallen 0.25% to US$85.22 a barrel. A strong US dollar weighed on oil prices.
Xero still a buy
The Xero Limited (ASX: XRO) share price could keep rising according to Goldman Sachs. This morning, the broker has retained its conviction buy rating with a $147.00 price target. It said: "Given the company's pivot to profitable growth and corresponding faster earnings ramp, we see an attractive entry point into a global growth story."
Gold price falls
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough session after the gold price fell overnight. According to CNBC, the spot gold price is down 1.35% to US$1,981.8 an ounce. Higher treasury yields weighed on the precious metal.
CBA is a sell
The Commonwealth Bank of Australia (ASX: CBA) share price could be heading lower according to Goldman Sachs. This morning, its analysts have retained their sell rating with a $83.42 price target. The broker believes CBA's skew towards consumer banking makes it "more exposed to sector wide headwinds such as intense mortgage price competition."
