On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in sensational form. The benchmark index stormed 7% higher to 5,181.4 points.
Will the local share market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to storm higher.
The ASX 200 looks set to continue its positive run on Tuesday after a solid start to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to open the day 41 points or 0.8% higher. In late trade on Wall Street the Dow Jones is up 3.15%, the S&P 500 is 3.2% higher, and the Nasdaq index has climbed 3.3%.
Oil prices crash to 18-year lows.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after another bleak 24 hours for oil prices. According to Bloomberg, the WTI crude oil price is down 6.4% to US$20.13 a barrel and the Brent crude oil price has dropped 9.3% to US$22.61 a barrel. Global demand for oil has evaporated because of the coronavirus outbreak.
Gold price slides lower.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price softened further. According to CNBC, the spot gold price is down 1% to US$1,637,70 an ounce. A strong night for U.S. equities appears to have led to traders switching back to risk on assets.
Wesfarmers to sell 5.2% Coles stake.
The Wesfarmers Ltd (ASX: WES) share price will be on watch on Tuesday after the conglomerate revealed that it will sell a 5.2% stake in Coles Group Ltd (ASX: COL). This will bring its overall stake in the supermarket giant below 10%. Which means it loses the right to nominate a director to the Coles board. Wesfarmers advised that it made the move to strengthen its balance sheet during the coronavirus outbreak.
Commonwealth Bank dividend.
Eligible shareholders of Commonwealth Bank of Australia (ASX: CBA) can look forward to being paid the banking giant's interim dividend later today. A dividend of $2.00 per share is being paid to the bank's shareholders. Elsewhere, dividends are being paid by conglomerate Wesfarmers and insurance giant Suncorp Group Ltd (ASX: SUN) today.
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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 Wesfarmers 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.
