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On Tuesday, the S&P/ASX 200 Index (ASX:XJO) recovered from Monday’s sell-off with a decent gain. The benchmark index rose 0.5% to 6,998.3 points.
Will the market be able to take advantage of this on Wednesday? Here are five things to watch:
ASX 200 expected to drop
The Australian stock market looks poised to give back yesterday’s gains on Wednesday after poor overnight trading in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.9% lower this morning. On Wall Street, the Dow Jones was down 0.95%, the S&P 500 was down 1.1% and the Nasdaq was down 1.1%. Concerns about rate hikes continue to weigh on sentiment.
Oil prices plunge
energy producers beach energy ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough day after oil prices sank overnight. According to Bloomberg, the price of WTI crude is down 5% to $92.17 a barrel and the price of Brent crude is down 5.4% to $99.44 a barrel. Traders sold oil amid concerns that rising inflation could hurt demand for the fuel.
Harvey Norman Results
the Harvey Norman Holdings Limited (ASX:HVN) the share price will be due on Wednesday when the retail giant releases its full annual results. According to a Citi note, its analysts expect the company to report an after-tax profit of $614 million. This is broadly in line with the market consensus estimate of $614.6 million.
lowest gold price
gold miners evolution mining ltd (ASX:EVN) and Northern Star Resources Ltd (ASX: NST) could be in for a bad day after the price of gold traded lower overnight. According to CNBC, the spot gold price is down 0.8% at $1,735.7 an ounce. This was because markets bet that the US Federal Reserve would be aggressive with its rate hikes.
A lot of ASX 200 shares will be trading ex-dividend this morning and could go into the red. This includes Bega cheese (ASX:BGA), Blackmores Ltd. (ASX: BKL), iress ltd (ASX: IRE), OZ Minerals Limited (ASX: OZL), Tabcorp Holdings Limited (ASX:TAH), Wesfarmers Ltd (ASX: WES), and Woolworths Ltd Group (ASX: WOW!). The latter will pay eligible shareholders its final fully paid dividend of 53 cents per share on September 27.