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Tuesday, the S&P/ASX 200 Index (ASX:XJO) was out of form again and fell into the red. The benchmark index fell 0.4% to 7,316.2 points.
Will the market be able to rebound on Wednesday? Here are five things to watch out for:
The ASX 200 should rebound
The Australian equity market is expected to rebound on Wednesday after a good night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 climbed 0.5% and the Nasdaq edged up 0.2%.
ANZ half-year results
All eyes will be on Australia and New Zealand Banking Group Ltd (ASX:ANZ) share price this morning when the banking giant releases its half-year results. According to a note from Goldman Sachs, its analysts expect ANZ to report operating profit before provisioning of $4,270 million and cash profit of $2,971 million for the six-month period. This will be down 4.2% and 7.4%, respectively, from the second half of fiscal 2021. On dividends, the broker has forecast a fully franked interim dividend of 72 cents per share. for the period.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX:BPT) and Santos S.A. (ASX: STO) could have a rough day after the drop in oil prices. According to Bloomberg, the price of WTI crude oil fell 2.5% to US$102.59 per barrel and the price of Brent crude oil fell 2.3% to US$105.09 per barrel. This appears to have been driven by demand concerns amid shutdowns in China.
Woolworths shares remain a buy
the Woolworths Group Ltd. (ASX: WOW) the stock price is good value according to the Goldman Sachs team. In response to the retail giant’s quarterly update, the broker reiterated its buy rating and raised its price target to $41.70. Goldman thinks “WOW will be a defensive player in the face of rising cost inflation.”
The price of gold is rising
Gold diggers Evolution Mining Ltd (ASX:EVN) and Northern Star Resources Ltd. (ASX: NST) could have a decent day after the price of gold rose overnight. According to CNBC, the gold spot price is up 0.2% at US$1,867.6 an ounce. The precious metal appears to be in a holding pattern ahead of the US Federal Reserve’s rate decision this week.