On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ran out of steam and dropped into the red. The benchmark index fell 0.2% to 7,999.3 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 rebound
It looks set to be a better day for the Australian share market on Wednesday thanks to a positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 52 points or 0.65% higher. On Wall Street, the Dow Jones was up 1.8%, the S&P 500 rose 0.65% and the Nasdaq climbed 0.2%. The Dow Jones had its best session in over a year.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult session after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 1.25% to US$80.88 a barrel and the Brent crude oil price is down 1.2% to US$83.84 a barrel. Chinese demand concerns put pressure on oil prices.
BHP Q4 update
BHP Group Ltd (ASX: BHP) shares will be on watch today when the mining giant releases its fourth quarter update. The market is expecting the Big Australian to report iron ore shipments of 74.9Mt for the three months with a realised iron ore price of US$101 per tonne. The consensus estimate for copper production is 470kt with a realised price of US$4.05 per tonne. And nickel production is expected to come in at 4.9Mt for the quarter.
Gold price surges to record high
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session after the gold price surged to a record high overnight. According to CNBC, the spot gold price is up 1.7% to US$2,470.7 an ounce. This has been driven by hopes that the US Federal Reserve will cut rates soon.
Buy Rio Tinto shares
The Rio Tinto Ltd (ASX: RIO) share price could be good value according to analysts at Goldman Sachs. In response to the mining giant's quarterly update, the broker has retained its buy rating with a trimmed price target of $136.10. It said: "Compelling relative valuation: trading at c. ~0.8x NAV (A$144.0/sh) vs. peers (BHP ~0.9x NAV and FMG ~1.3x NAV) and c. ~5.5x NTM EBITDA at GSe base case, below the historical average of ~6-7x."
