The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a disappointing start to the week on Monday and fell 0.35% to 6,278.4 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
The ASX is expected to open slightly lower.
According to the latest SPI futures, the local market is expected to open the day just two points lower on Tuesday. This is a good result considering the heavy declines that Wall Street experienced overnight. The Dow Jones fell 0.6%, the S&P 500 dropped 0.6%, and the Nasdaq tumbled 1.4%.
Tech shares could come under pressure.
Popular tech shares Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC) could come under pressure for a second day in a row after heavy declines in the U.S. tech sector overnight. Twitter, Atlassian, and the FAANG stocks all sunk lower.
Oil prices surge higher.
Australian energy producers such as BHP Billiton Limited (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL) could be set for a positive day of trade after oil prices surged higher. According to Bloomberg, WTI crude oil rose 2% to US$70.09 a barrel and Brent crude climbed 0.8% to US$74.91 a barrel. Prices rose on global supply concerns and strong underlying demand.
Earnings season kicks off today.
Receivables management company Credit Corp Group Limited (ASX: CCP) will kick off earnings season today with its full-year results release. According to the Bloomberg analyst consensus, the market is expecting Credit Corp to post a net profit after tax of $63.7 million in FY 2018. Elsewhere, integrated energy company Origin Energy Ltd (ASX: ORG) is due to release its quarterly update and Freelancer Ltd (ASX: FLN) is expected to report its first-half results.
Zenitas Healthcare quarterly update.
The Zenitas Healthcare Ltd (ASX: ZNT) share price will be on watch this morning following the release of its final quarter update after the market closed on Monday. The growing home care and health services company saw cash receipts increase to approximately $33 million in the fourth quarter, leading to full-year cash receipts of $106.1 million. Management reaffirmed its EBITDA guidance of between $13 million and $13.5 million prior to acquisition costs.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd and WiseTech Global. The Motley Fool Australia has recommended Freelancer Limited and Zenitas Healthcare Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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