On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a disappointing note. The benchmark index finished the day 0.85% lower at 7,286 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 sink again
The Australian share market looks set to sink again this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 1% lower. This follows a very poor start to the week on Wall Street, which saw the Dow Jones crash 2.1%, the S&P 500 drop 1.6%, and the Nasdaq fall 1.1%. The Dow had its worst day since October amid concerns rising COVID-19 cases could stifle global economic growth.
Oil prices crash
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under significant pressure today after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 7.6% to US$66.34 a barrel and the Brent crude oil price has tumbled 6.9% to US$68.52 a barrel. News that OPEC plans to remove its production limits hit oil prices very hard.
BHP fourth quarter update
The BHP Group Ltd (ASX: BHP) share price will be one to watch on Tuesday when it releases its fourth quarter update. Goldman Sachs is expecting a decent quarter and strong iron ore prices. It said: "June H realised pricing – Fe could be higher on better lump premium, but Jimblebar discounts may partly offset, expect coal discounts on pricing lags."
Gold price softens
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price softened. According to CNBC, the spot gold price is down 0.15% to US$1,812.1 an ounce. A strong US dollar put pressure on the precious metal.
ANZ capital return
The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price could be given a boost today by news that it is returning funds to shareholders. After the market close, ANZ announced that it will buy-back up to $1.5 billion of shares on-market as part of its capital management plan. The bank may not stop there, though. It advised that its capital position may allow future capital returns to be considered.
