On Tuesday the S&P/ASX 200 Index returned to form and charged higher. The benchmark index climbed a sizeable 3.1% to 5,939.6 points.
Will the local share market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to rise.
The S&P/ASX 200 index is expected to push higher on Wednesday. According to the latest SPI futures, the benchmark index is poised to open the day 0.25% or 15 points higher this morning. In late trade on Wall Street, the Dow Jones is up 4.6%, the S&P 500 is 4.7% higher, and the Nasdaq is trading 4.7% higher.
Wall Street bounces back.
U.S. equites have bounced back strongly on Tuesday night after President Trump announced plans for fiscal stimulus to curb the slower economic growth stemming from the coronavirus outbreak. Trump has proposed a 0% payroll tax rate that would last through the rest of the year. This is on top of an US$8.3 billion spending package Trump signed last week.
Oil prices jump.
Energy shares such as Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) could be on the rise today after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 11.3% to US$34.65 a barrel and the Brent crude oil price has stormed 10.1% higher to US$37.83 a barrel.
Gold price tumbles.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price tumbled lower. According to CNBC, the spot gold price fell 1.5% to US$1,649.50 an ounce after equity markets rebounded strongly.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price will be on watch today after the release of its latest traffic update. Total traffic in February was down 9.3% to 3.1 million passengers. Unsurprisingly, these declines have accelerated so far in March, with month to date passenger numbers down heavily. International passengers are down 25% and domestic passengers are down 6% so far this month.
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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 Sydney Airport Holdings 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.