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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had an underwhelming session and dropped into the red. The benchmark index fell 0.3% to 7,737.1 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower
It looks set to be another subdued day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% lower. On Wall Street, the Dow Jones climbed 0.35%, the S&P 500 rose 0.15% higher, and the Nasdaq pushed 0.2% higher.
Oil prices drop again
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have another tough session after oil prices dropped again overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$73.30 a barrel and the Brent crude oil price is down 1% to US$77.56 a barrel. Oil prices have been under pressure this week after OPEC+ announced an end to voluntary production cuts.
Treasury Wine update
The Treasury Wine Estates Ltd (ASX: TWE) share price will be on watch today. That’s because the wine giant released an update after the market close on Tuesday. As well as talking up its sizeable opportunity in North America, the Penfolds owner reaffirmed its guidance for FY 2024. Treasury Wine continues to expect mid-high single digit EBITS growth for the year. This excludes the EBITS contribution from DAOU in the second half, which is expected to be US$24 million. This is in line with management’s expectations.
Gold price tumbles
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1% to US$2,346.6 an ounce. A stronger US dollar put pressure on the precious metal.
Xero’s notes offering
Xero Ltd (ASX: XRO) shares will be in focus today after the cloud accounting platform provider launched a new convertible notes offering. Xero is raising US$850 million (A$1.28 billion) through fixed coupon guaranteed senior unsecured convertible notes due in 2031. Management advised that the net proceeds will be used to repurchase its existing notes, for potential acquisitions and strategic investments, and for general corporate purposes.