On Tuesday the S&P/ASX 200 index started the week on a disappointing note. The benchmark index fell a sizeable 1.35% to 6,994.5 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 rebound.
The S&P/ASX 200 index looks set to rebound on Wednesday. According to the latest SPI futures, the ASX 200 is poised to rise 39 points or 0.55% at the open. This follows a positive night of trade on global markets. Over on Wall Street in late trade the Dow Jones is up 0.8%, the S&P 500 is trading over 1% higher, and the Nasdaq index is charging 1.4% higher.
Oil prices climb higher.
Energy producers including Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could recover on Wednesday after oil prices bounced back. According to Bloomberg, the WTI crude oil price is up 0.55% to US$53.44 a barrel and the Brent crude oil price is up 0.5% to US$59.62 a barrel. This gain has snapped a five-day losing streak for oil prices.
Gold price tumbles.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) will be on watch on Wednesday after the gold price pulled back. According to CNBC, the spot gold price is down 0.45% to US$1,570.40 an ounce. The price of the precious metal eased following the rebound in global share markets.
Virgin Money update.
The Virgin Money UK PLC (ASX: VUK) share price will be on watch today following a late announcement on Tuesday. That announcement revealed that trading during the first quarter had been in line with expectations. In the UK the company’s London listed shares ended the day over 4% higher.
Treasury Wine guidance downgrade.
The Treasury Wine Estates Ltd (ASX: TWE) share price could come under pressure on Tuesday after it downgraded its FY 2020 EBITS guidance. According to the release, the wine company has fallen short of its own first half expectations and has downgraded its guidance accordingly. It now expects EBITS growth of 5% to 10%, compared to its previous guidance of 15% to 20% growth. Tough trading conditions in the United States market are largely to blame for the downgrade.
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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 and has recommended Treasury Wine Estates Limited. 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.