On Wednesday the S&P/ASX 200 Index (ASX: XJO) came under pressure again and tumbled lower. The benchmark index fell 3.6% to 5,725.9 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 sink lower.
The S&P/ASX 200 index is expected to sink lower again on Thursday. According to the latest SPI futures, the benchmark index is due to open the day 3.7% or 210 points lower this morning. In late trade on Wall Street, the Dow Jones is down 5.2%, the S&P 500 is 4.7% lower, and the Nasdaq is down 4.6%.
U.S. bull markets ends.
An 11-year bull market came to an end in the United States overnight after Wall Street dropped into a bear market. This is the term given when the share market or index falls 20% from its high. Financial markets are nervously waiting for Washington to finally make a move on stimulus to shield the economy from the brunt of the coronavirus impact.
Oil prices sink.
Energy shares such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices dropped lower again. According to Bloomberg, the WTI crude oil price is down 4.9% to US$32.69 a barrel and the Brent crude oil has fallen 3.9% to US$35.77 a barrel. Oil prices tumbled after Saudi Aramco was asked to raise its output capacity.
Gold price slides lower.
Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could drop lower today despite the heavy declines on Wall Street. According to CNBC, the spot gold price has fallen 1% to US$1,644.70 an ounce. This decline was blamed on investors covering margins.
Soul Pattinson update.
The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price will be on watch on Thursday after the release of a profit warning. The investment house warned that its regular profit has been impacted by reduced earnings from all its major investments. One positive, though, was that management appears optimistic it will still be able to increase its dividend in FY 2020.
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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 Washington H. Soul Pattinson and Company 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.