After a strong start to the week, the S&P/ASX 200 Index (ASX: XJO) gave back some of its gains and dropped notably lower on Tuesday. The benchmark index fell 0.6% to 5,941.1 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX 200 to rebound.
It looks set to be a positive day of trade for the ASX 200 index on Wednesday after a very strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.5% higher. In the United States the Dow Jones rose 2.1%, the S&P 500 climbed 1.3%, and the Nasdaq pushed 0.9% higher. Easing coronavirus cases in Florida and California appears to have given investor sentiment a boost.
Oil prices rise.
Energy producers Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be positive performers on Wednesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price has risen 1% to US$40.49 a barrel and the Brent crude oil price climbed 0.7% to US$43.05 a barrel. Oil prices rose after OPEC and its allies revealed that they cut production by more than agreed in June.
Gold price largely flat.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued day of trade after a flat night of trade for the gold price. According to CNBC, the spot gold price is ever so slightly higher at US$1,812.50 an ounce. Coronavirus concerns has helped drive the precious metal beyond US$1,800 an ounce this month.
Woodside asset review.
The Woodside Petroleum Limited (ASX: WPL) share price could come under pressure on Wednesday after the energy producer announced billions of dollars of impairments. According to the release, Woodside expects to recognise non-cash, post-tax impairment losses of US$3.92 billion with its first half results. This comprises $2.76 billion for oil and gas properties and $1.16 billion for exploration and evaluation assets.
Collins Foods goes ex-dividend.
The Collins Foods Ltd (ASX: CKF) share price is likely to drop lower this morning when it trades ex-dividend for its final dividend. Eligible shareholders of the KFC and Taco Bell restaurant operator can now look forward to being paid its fully franked 10.5 cents per share dividend later this month on 30 July 2020.
