On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.5% to 7,291.3 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 fall again
The Australian share market looks set to fall again on Wednesday following another selloff on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 48 points or 0.65% lower this morning. In late trade on Wall Street, the Dow Jones is down 1.35%, the S&P 500 is down 1.8%, and the Nasdaq is down 2.3%.
Oil prices sink to 2022 low
It could be a tough day for energy producers Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.9% to US$73.96 a barrel and the Brent crude oil price has fallen 4.3% to US$79.14 a barrel. Oil prices hit their lowest levels since December 2021 on increasing economic uncertainty.
Beach downgraded
The Beach Energy share price could also come under pressure after being hit with a broker downgrade this morning. According to a note out of Morgans, its analysts have downgraded the energy producer's shares to a hold rating with a $1.91 price target. It commented: "Despite the ongoing tight conditions in energy markets we feel that with the recent strong share price run and issues in WA that the stock is fairly priced."
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up a fraction to US$1,782.2 an ounce. Investors appear to have been seeking safe haven options amid the market volatility.
Iron ore holds up
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) could be relatively stable on Wednesday after the benchmark iron ore price creeped ever so slightly higher. The steel making ingredient is currently fetching US$109.70 a tonne. On Wall Street, BHP and Rio Tinto are trading flat.
