On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged into the red. The benchmark index fell 0.1% to 8,103.2 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to crash
The Australian share market looks set to have a difficult session on Wednesday following a selloff in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 103 points or 1.3% lower. On Wall Street, the Dow Jones was down 1.5%, the S&P 500 fell 2.1% and the Nasdaq sank 3.3%. A key driver of this was NVIDIA Corp (NASDAQ: NVDA), which was sold off and dropped almost 10% overnight.
Oil prices sink
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a very poor session on Wednesday after oil prices also crashed overnight. According to Bloomberg, the WTI crude oil price is down 4.35% to US$70.33 a barrel and the Brent crude oil price is down 4.9% to US$73.74 a barrel. Concerns about rising supply and faltering demand were behind the selling.
Fortescue shares go ex-dividend
Fortescue Ltd (ASX: FMG) shares are likely to trade meaningfully lower on Wednesday. That's because the iron ore giant's shares are due to go ex-dividend this morning for its fully franked final dividend. Eligible shareholders can look forward to receiving the company's 89 cents per share dividend later this month on 27 September. This dividend represents a 5% dividend yield at yesterday's close price.
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Ltd (ASX: RRL) could have a subdued session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.15% to US$2,523.5 an ounce. A stronger US dollar put pressure on the gold price.
Buy Northern Star shares
The Northern Star Resources Ltd (ASX: NST) share price could be undervalued according to analysts at Bell Potter. This morning, the broker has initiated coverage on the gold miner with a buy rating and $17.50 price target. Based on its current share price of $14.87, this implies potential upside of almost 18% for investors over the next 12 months. The broker commented: "We see upside to the current share price from the very large Group Mineral Resource base, gold price leverage and inorganic growth."
