On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued manner. The benchmark index finished the day a fraction lower at 7,307.3 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to edge lower this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower. This follows a mixed night of trade on Wall Street, which saw the Dow Jones fall 0.45%, the S&P 500 rise 0.2%, and the Nasdaq storm 1% higher.
Oil prices tumble
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 1.7% to US$72.83 a barrel and the Brent crude oil price has fallen 2% to US$74.69 a barrel. Oil prices slipped from three-year highs ahead of OPEC talks.
Tech shares could rise
Tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) could be on the rise today. This follows a very strong night of trade on the Nasdaq index, which saw the tech-heavy index jump to a record high. As the local tech sector tends to follow its lead, this bodes well for today’s session. Facebook helped drive the Nasdaq higher after the social media giant reached a trillion-dollar market cap for the first time.
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 edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,779.50 an ounce. Growing COVID-19 fears supported the safe haven asset.
The Woolworths Group Ltd (ASX: WOW) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker downgraded the retail giant to a neutral rating with a reduced price target of $36.80. Goldman made the move after updating its valuation to account for the Endeavour demerger.