On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains to finish the day lower. The benchmark index fell 0.65% to 5,252.3 points.
Will the local share market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 poised to fall.
The S&P/ASX 200 index looks set to drop lower again on Wednesday. According to the latest SPI futures, the benchmark index is expected to fall 41 points or 0.8% at the open. On Wall Street the Dow Jones was up 900 points, but ended down 0.2%. The S&P 500 fell 0.15%, and the Nasdaq dropped 0.3%.
Oil prices tumble.
The shares of energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could drop lower today after oil prices weakened further. According to Bloomberg, the WTI crude oil price sank 6.5% to US$24.40 a barrel and the Brent crude oil price fell 1.4% to US$32.59 a barrel. Oversupply concerns weighed heavily on prices.
Bank of Queensland result.
The Bank of Queensland Limited (ASX: BOQ) share price will be on watch today when the regional bank releases its half year results. This makes it the first bank to release its number since the COVID-19 outbreak hit Australia. According to Goldman Sachs, it expects the bank to report first half cash earnings of $119 million. This will be a 29% decline on the prior corresponding period. An interim dividend of 25 cents per share is also expected.
Gold price pulls back.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price pulled back. According to CNBC, the spot gold price is down 0.8% to US$1,680.50 an ounce. Traders were selling gold amid signs that countries were making progress against the coronavirus.
Banks downgraded by Fitch.
Following an assessment of the economic impact of the COVID-19 pandemic on the Australian and New Zealand economies, Fitch Ratings has downgraded its long-term ratings for the major Australian banks by one notch, to A+ (from AA-). While not unexpected, this could put a bit of pressure on Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four today.
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