On Tuesday the S&P/ASX 200 index had a day to forget. The benchmark index crashed 2.2% to 6,712.3 points.
Will the local market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX poised to sink lower again.
The S&P/ASX 200 index looks set to sink lower for a second day in a row. According to the latest SPI futures, the ASX 200 index is expected to fall 0.9% or 62 points at the open. This follows another selloff on Wall Street which in late trade sees the Dow Jones down 1.2%, the S&P 500 trading 0.9% lower, and the Nasdaq down 0.9%.
Trade war concerns.
Once again it is concerns over the trade war that is weighing on share markets. President Trump warned that he might wait until after the 2020 election before making a deal with China. This could mean another bleak day of trade for tech shares such as Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC) today.
Oil prices positive.
Australian energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a positive night of trade for oil prices. According to Bloomberg, the WTI crude oil price climbed 0.5% to US$56.22 a barrel and the Brent crude oil price is up slightly to US$60.99 a barrel.
oOh!Media earnings upgrade.
The oOh!Media Ltd (ASX: OML) share price could be on the rise today after it upgraded its earnings guidance after the market close on Tuesday. The outdoor advertising and media company expects FY 2019 EBITDA in the range of $138 million to $143 million. This compares to previous guidance of $125 million to $135 million. Improved bookings for September and the fourth quarter are largely behind the upgrade.
Gold price surges higher.
It could be a good day of trade for gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) after the spot gold price surged higher overnight. According to CNBC, the spot gold price is up 1% to US$1,484 an ounce following concerns that the trade war will drag on long into 2020.
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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 Altium and WiseTech Global. The Motley Fool Australia has recommended oOh!Media 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.