On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) started the week in the red. The benchmark index fell 0.1% to 6,186.9 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX futures pointing lower.
According to the latest SPI futures, the Australian share market is expected to open the day 0.1% or 7 points lower on Tuesday. This follows a disappointing start to the week on Wall Street which saw the Dow Jones fall 0.7% and the S&P 500 drop 0.35%. The Nasdaq bucked the trend and rose almost 0.1%.
Oil prices storm higher.
The shares of Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be set for another positive day of trade after oil prices stormed higher. According to Bloomberg, the WTI crude oil price rose 2.1% to US$72.26 a barrel and the Brent crude oil price surged 3.3% higher to US$81.43 a barrel. The Brent crude oil broke the US$80 mark for the first time in four years after Saudi Arabia and Russia ruled out an increase in production in the near term.
BHP dividend to be paid.
Eligible shareholders of BHP Billiton Limited (ASX: BHP) will receive their final fully franked 88.5 cents per share dividend today. This dividend is one of a number being paid this week by some of the biggest companies on the market. In fact, a total of $13 billion is expected to land in investors’ pockets this week.
Australian dollar falls.
The Australian dollar continued its decline overnight. The local currency fell 0.5% over the last 24 hours to 72.5 U.S. cents. If this trend continues it could be good news for companies generating sizeable revenues in the United States such as Aristocrat Leisure Limited (ASX: ALL) and Appen Ltd (ASX: APX).
SG Fleet acquisition of Eclipx could be back on.
The SG Fleet Group Ltd (ASX: SGF) acquisition of Eclipx Group Ltd (ASX: ECX) could be back on according to the AFR. Last month Eclipx rejected an indicative offer from SG Fleet of $2.52 per share. The reports suggest that the two companies’ advisers met last week in an effort to work towards making a deal.
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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. 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.