On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index climbed 0.7% to 5,899.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to edge lower.
The ASX 200 index looks set to edge lower today despite a very strong start to the week on Wall Street. According to the latest SPI futures, the benchmark index is poised to open the day 8 points or 0.15% lower. On Wall Street the Dow Jones rose 1.2%, the S&P 500 climbed 1.3%, and the Nasdaq jumped 1.9% higher.
Is the tech rout over?
A very positive night of trade on the tech-heavy Nasdaq index could be a sign that the tech rout is finally over. The Nasdaq index stormed higher overnight thanks to strong gains by the likes of Apple and Nvidia. This could be good news for local tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), which have been struggling in recent weeks.
Oil prices lower.
Energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after oil prices softened again. According to Bloomberg, the WTI crude oil price is down slightly to US$37.30 a barrel and the Brent crude oil price is down 0.4% to US$39.67 a barrel. Oil prices slipped amid concerns over a stalled global economic recovery. In addition to this, news that Libya is poised to resume production weighed on sentiment.
Gold price jumps.
It could be a good day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price jumped higher overnight. According to CNBC, the spot gold price jumped 1% to US$1,966.9 an ounce on Monday night. This was driven by a weaker U.S. dollar amid dovish Federal Reserve hopes.
Shares going ex-dividend.
A handful of ASX 200 shares are going ex-dividend this morning and could drop lower. This includes poultry company Inghams Group Ltd (ASX: ING), media giant News Corp (ASX: NWS), and essential network services company Service Stream Limited (ASX: SSM).