On Tuesday the S&P/ASX 200 Index (ASX: XJO) followed the lead of global markets and dropped lower. The benchmark index fell 1.05% to 6,599.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 to rebound.
It looks set to be a much more positive day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.9% higher this morning. This is despite a mixed night of trade on Wall Street. In late trade the Dow Jones is down 0.35%, the S&P 500 is flat, and the Nasdaq is up 0.45%.
US congress passes COVID stimulus package.
The US Congress has passed a massive COVID-19 relief and government spending package. It finally made the move with the aim of injecting long-delayed aid into the fight against a once-in-a-century health and economic crisis. According to CNBC, both chambers approved the more than US$2 trillion legislation. This comprises US$900 billion in pandemic aid and US$1.4 trillion to fund the government through to 30 September.
Oil prices soften further.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another tough day after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 1.8% to US$47.09 a barrel and the Brent crude oil price has fallen 1.4% to US$50.22 a barrel. Once again, the new COVID-19 strain in Europe has fuelled demand recovery concerns.
Gold price falls.
Gold miners such as Evolution Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure after the gold price dropped lower again. According to CNBC, the spot gold price has fallen 0.8% to US$1,868.20 an ounce. A stronger US dollar weighed on the price of the precious metal.
Omni Bridgeway given conviction buy rating.
The Omni Bridgeway Ltd (ASX: OBL) share price could be dirt cheap according to one leading broker. A note out of Goldman Sachs reveals that it has reiterated its conviction buy rating and $5.50 price target. This compares to its current $3.78 price target. Goldman believes the company is positioned for any class action regulation changes and growth offshore.
