On Monday the S&P/ASX 200 index had a day to forget. A combination of coronavirus and oil price war concerns weighed heavily on the market, sending the index down 7.3% to 5,760.6 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 fall again.
Unfortunately, the S&P/ASX 200 index looks set to continue its slide on Tuesday. According to the latest SPI futures, the benchmark index is expected fall 244 points or 4.3% at the open this morning. In late trade on Wall Street, the Dow Jones is down 6.5%, the S&P 500 is 6.3% lower, and the Nasdaq is trading 6% lower.
Oil prices crash.
Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch today after oil prices failed to rebound overnight. The price war between major oil producers led to oil prices having their worst day of trade since 1991. According to Bloomberg, the WTI crude oil price is down 25% to US$31.04 a barrel and the Brent crude oil price has dropped 24% to US$34.50 a barrel.
Gold price edges higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the move today after the gold price edged higher. According to CNBC, the spot gold price climbed 0.1% to US$1,673.70 an ounce. The gold price was higher but appears to have been hit by profit taking.
Former Goldman Sachs CEO tips quick recovery.
The former CEO of Goldman Sachs, Lloyd Blankfein, believes that global share markets will bounce back quickly once the threat of the coronavirus eases. Especially given the underlying strength of the U.S. economy, well-capitalised banks, and healthy balance sheets. On Twitter he said: “Fear can take mkt lower, but expect quick recovery when health threat recedes. Esp in US, underlying economy strong, banks well-capped, system not too leveraged. Unlike ‘08, will avoid systemic damage that cud take years to work thru. Obviously, not ignoring tragic human toll.”
Shares going ex-dividend.
Another group of shares will be trading ex-dividend this morning and could trade lower. These include mining services company Perenti Global Ltd (ASX: PRN), plumbing parts company Reliance Worldwide Corporation Ltd (ASX: RWC), healthcare company Sonic Healthcare Limited (ASX: SHL).
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited and Sonic Healthcare 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.