The S&P/ASX 200 Index (ASX: XJO) was on form again on Tuesday and stormed notably higher. The benchmark index rose 1.05% to 6,007.8 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to sink lower.
The ASX 200 looks set to give back yesterday’s gains and more on Wednesday after a disappointing start to the week on Wall Street. According to the latest SPI futures, the benchmark index is expected to sink 96 points or 1.6% lower at the open. Wall Street returned from the Labor day holiday and saw the Dow Jones fall 2%, the S&P 500 drop 2.6%, and the Nasdaq crash 4%. Tesla shares were particularly poor performers, sinking 20% lower.
Oil prices crash lower.
Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices crashed lower. According to Bloomberg, the WTI crude oil price has sunk 7.3% lower to US$36.88 a barrel and the Brent crude oil price has dropped 5% to US$39.87 a barrel. Prices have come under pressure since Saudi Arabia made very deep monthly price cuts to offload its oil.
Tech shares likely to tumble.
It looks set to be a tough day of trade for Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX). This follows another selloff on the tech-heavy Nasdaq index overnight. The popular index crashed 4% lower after investors took profit off the table again. Tesla shares were particularly poor performers, sinking 20% lower.
Gold price rises.
The selloff on Wall Street and the collapse in oil prices has supported the gold price. This could be good news for Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) on Wednesday. According to CNBC, the spot gold price is up 0.2% to US$1,938.30 an ounce. Investors were seeking out safe haven assets and driving the gold price higher.
Shares going ex-dividend.
More ASX 200 shares are going ex-dividend this morning and could fall that little bit more than the rest of the market. Logistics solutions company Brambles Limited (ASX: BXB) and media company Nine Entertainment Co Holdings Ltd (ASX: NEC) are both due to trade ex-dividend this morning. They will then pay their dividends to eligible shareholders on 8 October and 20 October, respectively.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings 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.