On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains to finish the day lower. The benchmark index fell a disappointing 2% to 5,076.8 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 rebound.
The ASX 200 looks set to rebound this morning despite a poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to jump 1.4% or 73 points higher at the open. In late trade on Wall Street the Dow Jones is down 1.6%, the S&P 500 is 1.5% lower, and the Nasdaq index has fallen 1.1%. This means the Dow is on course for its worst ever first quarter.
Oil prices mixed.
Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.6% to US$20.41 a barrel and the Brent crude oil price has dropped 0.2% to US$22.71 a barrel. Oil prices have had their worst month and quarter on record.
Gold price tumbles.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure today after the gold price dropped lower. According to CNBC, the spot gold price is down 2.8% to US$1,597.20 an ounce. Despite this sizeable decline, the gold price is set to record its sixth consecutive quarterly gain.
Premier Investments rated as neutral.
The Premier Investments Limited (ASX: PMV) share price will be on watch on Wednesday after Goldman Sachs rated its shares as neutral. It has downgraded its FY 2020 revenue and profit forecasts by 12.2% and 23.1%, respectively, to account for store closures. The broker has a $13.50 price target on the retailer's shares.
Iron ore price rises.
It could be a positive day of trade for iron ore producers BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG). On Tuesday iron ore prices pushed higher in both London and China. The benchmark 62% fines rose 0.4% to US$83.32 a tonne on the London Metals Exchange.
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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 Premier Investments 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.
