On Monday the S&P/ASX 200 index started the week on a subdued note. The benchmark index fell 0.15% to 7,012.5 points.
Will the local share market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 poised to jump.
The S&P/ASX 200 index looks set to return to form on Tuesday. According to the latest SPI futures, the ASX 200 is poised to jump 43 points or 0.6% at the open. This follows a positive start to the week on Wall Street which in late trade sees the Dow Jones up 0.45%, the S&P 500 index up 0.55%, and the Nasdaq index storming 0.95% higher.
Oil prices sink.
Australia's leading energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure on Tuesday after oil prices continued to sink. According to Bloomberg, the WTI crude oil price has dropped 1.5% to US$49.56 a barrel and the Brent crude oil price is sinking 2.2% lower to US$53.28 a barrel. Concerns over Chinese demand for crude oil is weighing on prices.
Gold price higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) will be on watch after the gold price pushed higher again. According to CNBC, the spot gold price rose 0.25% to US$1,577.3 an ounce. Coronavirus concerns has boosted demand for safe haven assets.
Challenger results.
The Challenger Ltd (ASX: CGF) share price could be on the move this morning. The annuities company is scheduled to release its half year results before the morning bell. According to a note out of Goldman Sachs, it expects Challenger to report a 2% decline in first half normalised net profit after tax to $196 million. The broker has pencilled in an interim dividend of 17.5 cents per share, which would be flat on the prior corresponding period.
Suncorp results.
Also on watch will be the Suncorp Group Ltd (ASX: SUN) share price when it releases its half year results. Goldman Sachs has forecast an underlying profit of $262 million, down 2% on the prior corresponding period. The broker expects this to lead to Suncorp cutting its interim dividend by 12% to 23 cents per share. Elsewhere in the industry, Macquarie Group Ltd (ASX: MQG) is holding its investor briefing.
