5 things to watch on the ASX 200 on Wednesday


On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and stormed higher. The benchmark index rose 0.85% to 6,763.6 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to give back a large portion of its recent gains on Wednesday following a poor night of trade in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 80 points or 1.2% lower this morning. On Wall Street, the Dow Jones fell 1.55%, the S&P 500 dropped 2%, and the Nasdaq sank 3%.

Oil prices rise again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 1.9% to US$111.70 a barrel and the Brent crude oil price has risen 2.5% to US$117.95 a barrel. News that Saudi Arabia and the UAE are struggling to boost production meaningfully took oil prices higher.

Carsales to return

The Carsales.Com Ltd (ASX: CAR) share price is due to return from its trading halt on Wednesday morning. The auto listings company requested the halt so it could raise a total of $1.2 billion at a 14.5% discount of $17.75 per new share. The proceeds will be used to fund the acquisition of the remaining 51% of Trader Interactive.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,821 an ounce. Rate hike bets offset recession fears and weighed down the safe haven asset.

Megaport a potential takeover target

The Megaport Ltd (ASX: MP1) share price will be one to watch on Wednesday amid reports that sharks are circling the company. According to the AFR, significant weakness in the network as a service provider’s share price has left it vulnerable to a takeover. As a result, it is now shoring up its takeover defences to protect it from an opportunistic bid.

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