On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.2% to 7,045.6 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to bounce back on Tuesday following a solid night start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% higher this morning. In the United States, the Dow Jones dropped 0.2% but the S&P 500 rose 0.2% and the Nasdaq climbed 0.9% to a record close.
Oil prices soften
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could trade lower today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.35% to US$61.92 a barrel and the Brent crude oil price has fallen 0.7% to US$65.67 a barrel. Oil prices dropped after surging COVID-19 cases in India sparked fuel demand concerns.
IRESS update
The IRESS Ltd (ASX: IRE) share price will be on watch today following the release of an after market update. The financial technology company has upgraded its net profit after tax guidance for FY 2021 to between $70 million and $77 million from $56 million and $63 million. This follows IRESS concluding its QuantHouse earnout ahead of schedule, enabling the full integration of the business.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,780.80 an ounce. Gold was up and down during the session ahead of the US Federal Reserve meeting later this week.
Tech shares on watch
Australian tech shares including Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) will be worth watching closely today. This follows a very positive night of trade on the tech-focused Nasdaq index. The Nasdaq was the standout performer and hit a record close ahead of major earnings updates by Amazon, Apple, Google, Microsoft, and Tesla this week.
