On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a disappointing fashion. The benchmark index fell 0.6% to 7,353.1 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set to return to form on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning. This follows a decent start to the week on Wall Street, which in late trades sees the Dow Jones up 0.6%, the S&P 500 up 0.4%, but the Nasdaq trading 0.4% lower.
The TechnologyOne Ltd (ASX: TNE) share price will be on watch today when it releases its full year results. The team at Bell Potter is expecting a strong result in line with guidance. It commented: “Guidance is 35%+ growth, a higher number will signal strong conversion of on premise customers to SaaS; 2. On premise – initial licenses: Guidance is $20m, a lower number will increase the quality of the result; and 3. Cash flow: Guidance is cash flow generation will equate to c.80% of NPAT and we forecast 82%, an even higher number will increase the quality of the result.”
Oil prices rises
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices rebounded. According to Bloomberg, the WTI crude oil price is up 0.9% to US$76.62 a barrel and the Brent crude oil price has risen 0.9% to US$79.62 a barrel. Traders were buying oil despite concerns of potential releases from Indian and Japanese oil reserves.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a difficult day after the gold price sank. According to CNBC, the spot gold price is down 2.6% to US$1,803.4 an ounce. The gold price fell after US President Joe Biden nominated Federal Reserve Chair Jerome Powell for a second term. Traders had been hoping for a more dovish appointment.
Annual general meetings
A number of annual general meetings are taking place today and could see the release of trading updates at the events. This includes Brickworks Limited (ASX: BKW), Link Administration Holdings Ltd (ASX: LNK), Monadelphous Group Limited (ASX: MND), and Pro Medicus Limited (ASX: PME).