On Tuesday the S&P/ASX 200 Index (ASX: XJO) continued its disappointing run and tumbled notably lower. The benchmark index fell 1.8% to 5,953.4 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 to rebound.
The ASX 200 looks set to end its losing streak on Wednesday. According to the latest SPI futures, the benchmark index is expected to rise 28 points 0.5% higher at the open. This follows a positive night of trade on Wall Street which saw the Dow Jones rise 0.75%, the S&P 500 climb 0.75%, and the Nasdaq storm 1.4% higher.
Tech shares on watch.
The Australian tech sector was out of form on Tuesday and weighed heavily on the ASX 200. Pleasingly, it looks set to be a better day of trade for the likes of Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) on Wednesday after their US counterparts stormed higher. The local tech sector has a tendency to follow the lead of the tech-heavy Nasdaq index, which rose by a sizeable 1.4% overnight.
Oil prices charge higher.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise today after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$42.96 a barrel and the Brent crude oil price has jumped 1.1% to US$45.78 a barrel. Improving economic data drove oil prices higher.
Gold price edges lower.
The shares of Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) will be on watch today after the spot gold price edged lower. According to CNBC, the spot gold price fell 0.1% to US$1,976.50 an ounce. Robust US economic data weighed on the precious metal.
Shares trading ex-dividend.
Another group of shares will be going ex-dividend this morning and could trade lower. These include packaging company Amcor PLC (ASX: AMC), fintech Iress Ltd (ASX: IRE), health insurance giant Medibank Private Ltd (ASX: MPL), and wine company Treasury Wine Estates Ltd (ASX: TWE).
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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. owns shares of and recommends Altium. The Motley Fool Australia owns shares of and has recommended Amcor Limited and Treasury Wine Estates Limited. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended IRESS 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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