The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) ended its winning streak on Tuesday with a decline of 0.5% to 5,858.8 points.
Will the market be able to bounce back on Wednesday? Here are five things to watch:
ASX futures pointing lower.
The Australian share market looks likely to extend its decline on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 0.4% or 23 points lower this morning. This follows a disappointing night of trade on Wall Street which late in the session sees the Dow Jones down 1.7%, the S&P 500 1.8% lower, and the Nasdaq down 2.1%.
Trade war fears ignite.
The U.S. market tumbled lower overnight after the Financial Times reported that the U.S. cancelled a trade meeting with Chinese officials. The market had been optimistic that a trade deal was imminent, but this development has cast a doubt on talks.
Tech shares could come under pressure.
Tech shares including Afterpay Touch Group Ltd (ASX: APT) and Appen Ltd (ASX: APX) could come under pressure today after their U.S. counterparts were sold off on Wall Street due to trade war concerns and renewed fears of the global economy slowing down. Late in the U.S. session Amazon is down 3.5%, Netflix is 4% lower, and Apple is down 2%.
Oil prices slide lower.
Trade war concerns and renewed fears of the global economy slowing down also impacted oil prices overnight, which could weigh on Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) shares today. According to Bloomberg, the WTI crude oil price fell 2.1% to US$52.66 a barrel and the Brent crude oil price dropped 2.1% to US$61.41 a barrel.
Reliance Worldwide rated as a buy.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price could be heading higher according to one leading broker. A note out of Goldman Sachs today reveals that its analysts have held firm with their buy rating and $5.40 ahead of earnings season. The broker also retained its neutral rating and $4.85 price target on Fletcher Building Limited (ASX: FBU) shares.
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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 AFTERPAY T FPO and 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.
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