On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower after record new COVID-19 cases spooked markets. The benchmark index fell 1.7% to 6,051 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 expected to drop lower again.
It looks set to be another tough day of trade for the Australian share market after COVID-19 cases continue to rise globally. According to the latest SPI futures, the ASX 200 is expected to open the day 26 points or 0.4% lower. In late trade on Wall Street, the Dow Jones is down 0.7% and the S&P 500 has dropped 0.25%. Pleasingly, the Nasdaq is defying the selloff and is up 0.45%.
Coles Q1 update.
The Coles Group Ltd (ASX: COL) share price will be one to watch this morning when it releases its first quarter sales update. Expectations are high for the supermarket giant, with Goldman Sachs forecasting supermarket same store sales growth of ~7% for the quarter. According to a note out of the investment bank, it expects total first quarter sales of $9,365 million, up 7.7% on the prior corresponding period.
Oil prices rebound.
It could be a better day of trade for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 2.3% to US$39.45 a barrel and the Brent crude oil price has risen 1.7% to US$41.15 a barrel. Oil prices rebounded after an upcoming storm forced the shutdown of energy production in the U.S. Gulf of Mexico.
ANZ takes $528 million earnings hit.
The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could come under pressure after it became the latest big four bank to announce notable items that will impact its upcoming results. ANZ has announced that its second half 2020 cash profit will be impacted by an after tax charge of $528 million as a result of large notable items. This is expected to impact its common equity tier one capital by approximately 5 basis points. The notable items include remediation costs and accelerated software amortisation.
Gold price pushes higher.
It could be a good day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) after the gold price pushed higher. According to CNBC, the spot gold price is up 0.25% to US$1,910.1 an ounce following weakness in the U.S. dollar overnight.
