On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its strong morning gains to finish the day lower. The benchmark index fell 0.4% to 6,020.5 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to drop lower.
The ASX 200 is expected to drop lower again on Wednesday after a poor night of trade on Wall Street. According to the latest SPI futures, the benchmark index is expected to fall 24 points or 0.4% at the open. On Wall Street the Dow Jones fell 0.8%, the S&P 500 dropped 0.65%, and the Nasdaq tumbled 1.3% lower.
Rio Tinto half year results.
The Rio Tinto Limited (ASX: RIO) share price will be one to watch on Wednesday when it releases its half year results. According to a note out of Goldman Sachs, it expects the mining giant to report underlying earnings of US$4 billion and underlying EBITDA of US$9.1 billion. In respect to its dividend, Goldman is expecting Rio Tinto to declare a US$1.51 per share interim dividend.
Virgin Money UK Q3 update.
The Virgin Money UK PLC (ASX: VUK) share price could be on the rise today following the release of its third quarter update after the market close on Tuesday. The UK-based bank reported a 4.8% increase in customer deposits to £67.7 billion and a 5.7% increase in Business lending growth to £8.8 billion. Over in the UK, the Virgin Money share price rose 2.5% overnight.
Oil prices pull back.
Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices pulled back. According to Bloomberg, the WTI crude oil price fell 1.3% to US$41.06 a barrel and the Brent crude oil price dropped 0.35% to US$43.26 a barrel. Oil prices tumbled after rising coronavirus cases sparked demand fears.
Gold price jumps again.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Wednesday after the gold price continued its ascent. According to CNBC, the spot gold price rose 1% to US$1,950.30 an ounce. This could be the start of even greater rises, with some analysts tipping the price of the precious metal to go materially higher from here.
