On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note and recorded a strong gain. The benchmark index rose 0.85% to 6,229.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall.
The Australian share market is set to give back some of yesterday’s gain after a poor start to the week on global markets. According to the latest SPI futures, the ASX 200 is poised to fall 40 points or 0.65% at the open. In late trade on Wall Street the Dow Jones is down 1.4%, the S&P 500 has dropped 1.6%, and the Nasdaq is 1.6% lower. Concerns that a stimulus deal in the U.S. won’t be signed is weighing on markets.
Oil prices drop lower.
It could be a poor day for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Tuesday. According to Bloomberg, the WTI crude oil price has dropped 0.6% to US$40.64 a barrel and the Brent crude oil price is down 1.15% to US$42.44 a barrel. Oil prices dropped lower amid concerns over the stimulus package and on Libya’s plan to boost its output.
CSL R&D Investor Briefing.
The CSL Limited (ASX: CSL) share price could be on the move when it holds its annual research and development (R&D) investor briefing. One treatment of interest is EtranaDez, which was acquired from uniQure this year for US$450 million. It is a new gene therapy undergoing phase 3 trials as a treatment for haemophilia B. In FY 2020, the biotherapeutics giant invested US$922 million in its R&D. This doesn’t include the EtranaDez acquisition.
Gold price edges lower.
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a subdued start to the week for the gold price. According to CNBC, the spot gold price has dropped 0.1% to US$1,905.50 an ounce. Once again, this appears to have been driven by concerns that a U.S. stimulus package is still a long way from being agreed.
BHP quarterly update.
The BHP Group Ltd (ASX: BHP) share price will be on watch today when it releases its first quarter update. According to a note out of Goldman Sachs, it expects the mining giant to report Petroleum production of 26Mboe, Copper production of 365kt, and iron ore shipments of 71.5Mt. The latter represents a 7% quarter on quarter decline in shipments
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