On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and sank deep into the red. The benchmark index was down 1.3% to 6,943.4 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 again
The Australian share market looks set to fall again on Wednesday following a selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.6% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.45%, the S&P 500 has dropped 1.6%, and the Nasdaq is 2.2% lower.
Oil prices rebound
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a better session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$89.54 a barrel and the Brent crude oil price has risen 0.45% to US$91.12 a barrel. Tightening supplies boosted oil prices.
De Grey rated as a buy
Bell Potter believes that De Grey Mining Limited (ASX: DEG) shares are great value. This morning, the broker has reiterated its speculative buy rating on the gold miner with a $1.80 price target. This implies a potential upside of 69% for investors. It said: "The DFS shows the HGP can support a large-scale, long life production asset with operational flexibility and robust margins in one of the world's top mining jurisdictions."
Gold price falls
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,840.2 an ounce. Stronger bond yields continue to weigh on the precious metal.
BHP and Rio Tinto tumble
Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) look set to tumble again on Wednesday. In late trade on Wall Street, both miners are almost 2% lower again following further commodity price weakness. This includes an almost 2% decline in the spot iron ore price to US$116.50 a tonne.
