On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced higher. The benchmark index stormed 1.35% higher to 7,838.8 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
It looks set to be a red day for the Australian share market on Wednesday despite a relatively positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.45% lower. On Wall Street, the Dow Jones was down 0.75%, but the S&P 500 pushed 0.4% higher and the Nasdaq climbed 1.25%.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$80.77 a barrel and the Brent crude oil price is down 1.2% to US$84.94 a barrel. Easing tensions between Israel and Lebanon were behind the weakness.
Buy Bellevue Gold shares
The Bellevue Gold Ltd (ASX: BGL) share price is good value according to analysts at Goldman Sachs. This morning, the broker has initiated coverage on the gold miner with a buy rating and $2.20 price target. This implies potential upside of 24% for investors. It said: "With BGL largely through initial ramp up, we see the business well positioned amongst mid-cap peers at ~200-250kozpa gold production, with higher average grades and stronger margin generation, where low cost mill expansion/underground optionality support further upside."
Gold price falls
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price eased overnight. According to CNBC, the spot gold price is down 0.6% to US$2,331.1 an ounce. A stronger US dollar and widening bond yields put pressure on the precious metal.
Perpetual rated as a buy
Analysts at Bell Potter think investors should be buying Perpetual Ltd (ASX: PPT) shares. According to a note, the broker has reaffirmed its buy rating and $27.60 price target on the fund manager's shares. This implies potential upside of 30% for investors. Its analysts continue to believe that Perpetual's shares are undervalued by the market. They said: "We continue to see considerable upside from the current share price."
