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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a volatile day but eventually closed it with a small gain. The benchmark index rose 0.1% to 7,029.8 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to have a difficult day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 40 points or 0.6% lower this morning. On Wall Street, the Dow Jones fell 0.2%, the S&P 500 dropped 0.4%, and the Nasdaq sank 1%.
Oil prices soften
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.2% to US$90.52 a barrel and the Brent crude oil price has fallen 0.35% to US$96.30 a barrel. This was driven by optimism that Iran may increase its crude exports.
the Commonwealth Bank of Australia (ASX: CBA) share price will be one to watch this morning when the banking giant releases its full-year results. According to a note out of Goldman Sachs, following the bank’s update on one-offs earlier this week, its analysts are now forecasting cash earnings of $9,509 million for FY 2022. This will be a 9.9% increase on the prior corresponding period. The broker expects this to underpin a full year fully franked dividend of 380 cents per share.
Gold price rises
gold miners Evolution Mining Ltd. (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price traded higher overnight. According to CNBC, the spot gold price is up 0.3% to US$1,810.90 an ounce. Traders were buying gold after the US dollar softened.
Computershare results and guidance
the Computershare Limited (ASX: CPU) share price could be on the move on Wednesday after the stock transfer company released its full year results following yesterday’s close. For the 12 months ended June 30, Computershare reported a 12.2% increase in management revenue to $2.6 billion and a 10.6% lift in management earnings per share (EPS) to 58.03 cents. Looking ahead, the company is guiding massive management EPS growth of 55% in FY 2023.