On Monday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week on a disappointing note. The benchmark index fell 0.5% to 6,001.6 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound.
It looks set to be a positive day of trade for the ASX 200 index on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 45 points or 0.75% higher at the open. This follows a positive start to the week on Wall Street which saw the Dow Jones edge higher, the S&P 500 rise 0.85%, and the Nasdaq jumped 2.5% higher. The S&P 500's gain means it is now in positive territory for 2020.
Tech shares on watch.
Tech shares including Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be on the rise today after an incredibly positive night of trade for their U.S. counterparts. The tech-focused Nasdaq index jumped 2.5% overnight thanks to strong gains by the likes of Amazon, Apple, Microsoft, and Google parent, Alphabet. Amazon was the star of the show with a gain of almost 8%.
Oil prices edge lower.
It could be a positive day for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) on Tuesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price rose 0.3% to US$40.71 a barrel and the Brent crude oil price climbed 0.2% to US$43.22 a barrel. Coronavirus vaccine hopes supported oil prices.
Gold price rises.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Tuesday after the gold price strengthened further. According to CNBC, the spot gold price rose 0.45% to US$1,818.5 an ounce. Overnight the price of the precious metal hit its highest level since September 2011.
Commonwealth Bank given sell rating.
Analysts at Goldman Sachs believe the Commonwealth Bank of Australia (ASX: CBA) share price could be going lower from here. Ahead of its full year results release next month, the broker has retained its sell rating and $65.00 price target on the banking giant's shares. This price target implies potential downside of over 10%.
