On Monday the S&P/ASX 200 Index (ASX: XJO) continued its poor run and tumbled lower again. The benchmark index fell 2.2% to 5,719.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to jump.
The ASX 200 tumbled lower yesterday afternoon after U.S. futures started to point sharply lower. This morning the index looks set to rebound strongly after U.S. markets avoided a selloff and pushed higher. According to the latest SPI futures, the benchmark index is expected to open the day 134 points or 2.3% higher. On Wall Street the Dow Jones rose 0.6%, the S&P 500 pushed 0.8% higher, and the Nasdaq index jumped 1.4%.
Oil prices push higher.
Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could push higher after oil prices rebounded. According to Bloomberg, the WTI crude oil price climbed 2.15% to US$37.04 a barrel and the Brent crude oil price rose 2.7% to US$39.76 a barrel. Traders were buying oil on hopes that OPEC+ would stick to its production cuts.
The Jumbo Interactive Ltd (ASX: JIN) share price will be one to watch today if it returns from its trading halt. The online lottery ticket seller requested the halt on Monday while it prepared an announcement relating to the Western Australia lottery market.
Gold price drops lower.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be on the slide today after the gold price edged lower. According to CNBC, the spot gold price fell 0.25% to US$1,732.80 an ounce after the U.S. dollar strengthened.
Treasury Wine rated neutral.
The Treasury Wine Estates Ltd (ASX: TWE) share price might be fully valued according to analysts at Goldman Sachs. A note out of the investment bank reveals that its analysts have retained their neutral rating and $10.30 price target on the wine company’s shares. While data is pointing to improvements in sales, it notes that pricing on Chinese ecommerce platforms remains notably lower year on year.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Treasury Wine Estates 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.
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