5 things to watch on the ASX 200 on Wednesday

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.35% to 8,709.3 points

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

ASX 200 to fall

The Australian share market is expected to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower. In the United States, the Dow Jones fell 0.25%, the S&P 500 was down 0.15%, and the Nasdaq was 0.1% lower.

Oil prices tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult session on Wednesday after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4% to US$88.92 a barrel and the Brent crude oil price is down 2.6% to US$102.56 a barrel. Traders were selling oil after crude exports recovered at Saudi Arabia's Red Sea ports.

REA Group shares upgraded

The team at Bell Potter has become a little more positive on REA Group Ltd (ASX: REA) shares following recent weakness. This morning, the broker has upgraded the property listings company's shares to a hold rating with a $148.00 price target. It said: "We upgrade our recommendation to Hold, with the share price now trading in-line with our Target Price. Although we still see risk to FY27 volumes, we view the risk as broadly priced in and now wait to get clarity on looking through the cycle toward a recovery."

Gold price rises

ASX 200 gold shares including Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price pushed higher. According to CNBC, the gold futures price is up 1.1% to US$4,213.8 an ounce. Traders were buying the dip on gold following a heavy decline.

Buy Codan shares

Bell Potter doesn't think it is too late to buy Codan Ltd (ASX: CDA) shares despite their 24% rise on Tuesday. This morning, the broker has retained its buy rating with an improved price target of $73.00 (from $60.00). It said: "We forecast 39% Comms revenue growth in FY27e, implying 5% YoY in 2H27, and see scope for further upgrades if CDA successfully mitigates supply chain pressures given surging production of Group 2 UAS. CDA trades on 32x EBIT. Retain Buy."

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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