On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped to a three-month low. The benchmark index fell 0.65% to 5,784.1 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
Image source: Getty Images
ASX 200 futures pointing higher.
The ASX 200 index is expected to bounce back strongly on Wednesday. According to the latest SPI futures, the benchmark index is poised to storm 61 points or 1.06% higher at the open. This follows a very positive night of trade on Wall Street which saw the Dow Jones rise 0.5%, the S&P 500 climb 1.05%, and the Nasdaq index race 1.7% higher.
Tech share recovery to continue.
Australian tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) look set to continue their recovery on Wednesday after the tech-focused Nasdaq index stormed higher overnight. The highlight on the Nasdaq was arguably the Amazon share price, which surged almost 6% higher. Investors appear to believe the tech rout is now over.
Oil prices rebound slightly.
It could be a better day of trade for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices rebounded from Monday night's sizeable declines. According to Bloomberg, the WTI crude oil price is up 0.6% to US$39.55 a barrel and the Brent crude oil price has risen 0.6% to US$41.70 a barrel. Demand concerns have weighed on prices this week.
Gold price drops lower.
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch this morning after the gold price softened further. According to CNBC, the spot gold price has fallen 0.3% to US$1,905.00 an ounce. The precious metal came under pressure after the U.S. dollar strengthened again.
News Corp given conviction buy rating.
The News Corp (ASX: NWS) share price could be heading a lot higher from here according to analysts at Goldman Sachs. They have reaffirmed their conviction buy rating and $26.70 price target on the media company's shares. Goldman notes that News Corp has a constructive earnings outlook and plenty of valuation upside within its portfolio.
