Will the local share market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to storm higher.
The ASX 200 looks set to storm higher on Wednesday after a stunning rally on Wall Street overnight. According to the latest SPI futures, the benchmark index is expected to jump 274 points or 5.81% at the open. In late trade on Wall Street the Dow Jones is up 11.5%, the S&P 500 index has risen 9.3%, and the Nasdaq index is up 7.9%. U.S. shares surged higher on hopes that a stimulus deal is close.
Dow jumps 11%.
The Dow Jones Industrial Average is on course to have its best day of trade since 1933. In late trade the U.S. index is up a whopping 11.5%. The catalyst for this was hopes that U.S. lawmakers are close to an agreement on a stimulus bill to rescue the U.S. economy from the damage caused by the coronavirus. In addition to this, President Trump advised that he wants the U.S. to be open for business again by Easter.
Oil prices push higher.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise on Wednesday after oil prices pushed higher for a second day in a row. According to Bloomberg, the WTI crude oil price is up 2.2% to US$23.88 a barrel and the Brent crude oil has climbed 0.2% to US$27.09 a barrel.
Gold price jumps.
Gold miners including Resolute Mining Limited (ASX: RSG) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch again after the gold price charged higher. According to CNBC, the spot gold price climbed a further 5.8% to US$1,658.2 an ounce. The precious metal has been surging higher following extraordinary central bank actions.
The Bapcor Ltd (ASX: BAP) share price will be on watch today after the release of a trading update after the market close. Bapcor revealed that its businesses have been performing in line with its expectations and were on track to reach its full year guidance. However, due to forced closures and general uncertainty from the coronavirus outbreak, it has withdrawn its guidance.
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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 Bapcor. 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.