On Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and extended its impressive run. The benchmark index rose just over 1% to 6,195.7 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to drop lower.
The ASX 200 looks set to finally end its winning streak on Wednesday. According to the latest SPI futures, the ASX 200 is poised to open the day 55 points or 0.9% lower this morning. This follows a mixed night on Wall Street. In late trade the Dow Jones is down 0.5%, the S&P 500 is 0.6% lower, and the Nasdaq is edging slightly higher
Bank of Queensland results.
The Bank of Queensland Limited (ASX: BOQ) share price will be on watch today when it releases its full year results. Last month the regional bank warned that its result would include loan impairment expense of $175 million (pre‐tax). This is inclusive of $133 million of COVID‐19 related collective provision expenses. According to a note out of Goldman Sachs, it expects the bank to report a 34% decline in cash earnings to $210 million. It is also forecasting the payment of its deferred 10 cents per share interim dividend and a final 2 cents per share dividend.
BHP quarterly update.
The BHP Group Ltd (ASX: BHP) share price will also be on watch today when the mining giant releases its first quarter update. According to a note out of Goldman Sachs, it expects BHP to report Petroleum production of 26Mboe, Copper production of 365kt, and iron ore shipments of 71.5Mt. The latter will be a 7% quarter on quarter decline.
Gold price sinks lower.
Gold miners such as Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) could come under pressure today after the gold price sank lower. According to CNBC, the spot gold price is down 1.6% to US$1,897.40 an ounce. The precious metal came under pressure after a strong rally by the U.S. dollar.
Oil prices rise.
It could be a good day for energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 2.2% to US$40.29 a barrel and the Brent crude oil price is up 1.9% to US$42.52 a barrel. Oil prices jumped after the release of strong China trade data.
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.