On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a day to forget. The benchmark index crashed 1.8% to 7,235.3 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market looks set to rebound strongly from yesterday’s sell off thanks to a very positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 96 points or 1.35% higher this morning. Wall Street had its best day since March, with the Dow Jones rising 1.75%, the S&P 500 jumping 1.4%, and the Nasdaq pushing 0.8% higher.
Oil prices storm higher
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.65% to US$73.54 a barrel and the Brent crude oil price has risen 1.9% to US$74.90 a barrel. Oil prices rose amid a softening US dollar and Iranian supply uncertainty.
Tech shares on watch
Tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) could be on the charge today. This follows a strong night of trade on the Nasdaq index. The buying drove the tech-heavy Nasdaq index 0.8% higher. This left the famous index trading within sight of its record high.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.8% to US$1,783.20 an ounce. The gold price rose after the US dollar softened and traders bought the dip.
Metcash rated as a buy
The Metcash Limited (ASX: MTS) share price could be good value right now. According to analysts at Goldman Sachs, its team have retained their buy rating and $3.95 price target on the wholesale distributor’s shares ahead of its results next week. Goldman is expecting Metcash to report a 24.5% increase in EBITDA to $606.6 million.