On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back all of Monday's strong gains. The benchmark index tumbled a disappointing 1.1% to 5,403 points.
Will the market be bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to fall again.
The Australian share market looks set to extend its decline on Wednesday. According to the latest SPI futures, the ASX 200 is expected to fall 70 points or 1.3% at the open. This follows a very poor night of trade on Wall Street which saw the Dow Jones fall 1.9%, the S&P 500 drop 2.05%, and the Nasdaq index tumble 2.05%. Investors were selling equities due to reopening jitters, with U.S. banks particularly poor performers.
Commonwealth Bank third quarter update.
The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today when it releases its third quarter update. Some analysts have tipped the Australia's largest bank to reveal its expectations for provisions in FY 2020. There is speculation that Commonwealth Bank's bad debt provisions could be as high as $3 billion because of the coronavirus pandemic.
Oil prices jump.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise today after oil prices jumped higher. According to Bloomberg, the WTI crude oil price rose 5.6% to US$25.50 a barrel and the Brent crude oil price climbed 0.2% to US$29.69 a barrel. Traders were buying oil after Saudi Arabia pledged to deepen its production cut.
Gold price pushes higher.
It could be a good day of trade for gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) after the gold price pushed higher. According to CNBC, the spot gold price is up 0.45% to US$1,705.60 an ounce. Investors are betting on more stimulus from central banks to support the economic recovery from the pandemic.
REA Group tipped as a buy.
The REA Group Limited (ASX: REA) share price could have a lot more room to run according to analysts at Goldman Sachs. The broker has retained its buy rating and lifted the price target on the property listings company's shares to $107.00. This represents potential upside of approximately 14% over the next 12 months.
5 cheap stocks that could be the biggest winners of the stock market crash
Investing expert Scott Phillips has just named what he believes are the 5 cheapest and best stocks to buy right now. Courtesy of the crashing stock market, these 5 companies are suddenly trading at significant discounts to their recent highs… creating what could be incredible opportunities for bargain-hungry investors. Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares to buy now… before the next stock market rally.
Returns as of 7/4/2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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.
