5 things to watch on the ASX 200 on Wednesday
On Tuesday, the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains and ended the day only a fraction higher. The benchmark index rose almost 0.1% to 7,860.4 points.
Will the market bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to fall on Wednesday following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.5%, the S&P 500 is down 1%, and the Nasdaq is 1.6% lower.
Oil prices fall
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$66.91 a barrel and the Brent crude oil price is down 0.7% to US$70.57 a barrel. Ukraine-Russia peace talks put pressure on oil prices.
Buy REA Group shares
Now could be the time to buy REA Group Ltd (ASX: REA) shares according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating with a lowered price target of $264.00. Bell Potter believes that recent share price weakness has created an opportunity for investors. It said: "We make no changes to our earnings forecasts but would anticipate some level of recovery in share price/relative valuation in the event the pending bid for DHG is unsuccessful. We remain Buy rated and continue to hold a positive long-term view of REA, with a cash flow profile able to sustain operational and capital expenditure to support its market leading position."
Gold price charges higher
It looks set to be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.25% to US$3,043.6 an ounce. Rising tensions in the Middle East gave the safe haven a boost.
New Hope rated as a sell
New Hope Corporation Ltd (ASX: NHC) shares are overvalued according to analysts at Goldman Sachs. This morning, the broker has responded to the coal miner's half year results by reiterated its sell rating with a trimmed price target of $4.30. It said: "Thermal Coal market to soften in 2025: our global commodity team forecasts lower thermal coal prices in 2025 primarily driven by softer global import demand, expanding supply, and continuous decarbonisation efforts."
The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in REA Group and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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