On Tuesday the S&P/ASX 200 index fell heavily for a second day in a row after coronavirus concerns escalated. The benchmark index fell 1.6% to 6,866.6 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 tumble again.
It looks set to be another disappointing day of trade for the S&P/ASX 200 index after the coronavirus spread into the United States and spooked global financial markets. According to the latest SPI futures, the ASX 200 is poised to fall a further 166 points or 2.4% at the open. In late trade on Wall Street the Dow Jones is down 2.9%, the S&P 500 index is 3.1% lower, and the Nasdaq index is down by 2.9%.
Woolworths half year results.
The Woolworths Group Ltd (ASX: WOW) share price will be on watch today when the conglomerate releases its half year results. Expectations are high for the company's supermarket business after a strong result by Coles Group Ltd (ASX: COL) last week. According to Goldman Sachs, it expects Woolworths to report earnings before interest and tax (EBIT) of $1,859 million and a net profit after tax of $1,021 million. The latter represents an 8.8% increase over the prior corresponding period. The broker has also pencilled in a fully franked interim dividend of 49 cents per share.
Oil prices continue to fall.
Energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could slide lower today after oil prices continued to weaken. According to Bloomberg, the WTI crude oil price has fallen a further 2.9% to US$49.93 a barrel and the Brent crude oil price has dropped 2.45% to US$54.92 a barrel.
Gold price pulls back.
Gold miners including Saracen Mineral Holdings Limited (ASX: SAR) and St Barbara Ltd (ASX: SBM) will be on watch today after the gold price slipped from its 7-year high. According to CNBC, the spot gold price is down 1.8% to US$1,646.10 an ounce despite the selloff on Wall Street overnight.
Results to watch.
A number of popular companies are scheduled to release their latest results this morning along with Woolworths. This includes healthcare company Healius Ltd (ASX: HLS), funerals company InvoCare Limited (ASX: IVC), and mining giant Rio Tinto Limited (ASX: RIO).
