On Tuesday the S&P/ASX 200 index gave back its morning gains to finish the day ever so slightly lower at 6,748.9 points.
Will the local share market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to sink.
The Australian share market looks set to come under pressure today after a weak night of trade in Europe and the United States. According to the latest SPI futures, the ASX 200 index is expected to open the day a disappointing 70 points or 1.1% lower this morning. On Wall Street the Dow Jones fell 0.5%, the S&P 500 tumbled 0.8%, and the Nasdaq index sank 1.5%.
Tech shares on watch.
Australian tech shares including Altium Limited (ASX: ALU) and Nearmap Ltd (ASX: NEA) look set to tumble lower today after their U.S. counterparts dropped lower overnight. The technology-focused Nasdaq index dropped 1.5% amid concerns that President Trump could be impeached.
Oil prices tumble.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) are likely to trade notably lower today after oil prices sank. According to Bloomberg, the WTI crude oil price dropped 3.1% to US$56.83 a barrel and the Brent crude oil price fell 3.5% to US$62.49 a barrel after trade war concerns returned.
Afterpay added to conviction list.
The Afterpay Touch Group Ltd (ASX: APT) share price will be on watch today after analysts at Goldman Sachs added the payments company to their conviction buy list with a lofty $42.90 price target. The broker believes its frequency of use is driving strong operating leverage.
Gold price continues to rise.
It looks set to be another positive day of trade for gold miners including Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) after increased demand for safe haven assets sent the gold price charging to a three-week high. According to CNBC, the spot gold price climbed a further 0.45% to US$1,538.60 an ounce.
