On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and ended the day lower. The benchmark index fell 0.35% to 8,697.1 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 drop again
The Australian share market looks set to drop again on Tuesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 66 points or 0.75% lower. In the United States, the Dow Jones tumbled 1.1%, the S&P 500 dropped 0.4%, and the Nasdaq fell 0.2%.
Oil prices jump
It looks like ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 3.3% to US$105.30 a barrel and the Brent crude oil price is up 5.45% to US$114.05 a barrel. This follows news that Iran has attacked UAE for the first time since the ceasefire.
Westpac half-year results
All eyes will be on Westpac Banking Corp (ASX: WBC) shares on Tuesday when the big four bank releases its eagerly anticipated half-year results. The team at Citi is expecting Australia's oldest bank to report a first-half cash profit of $3.6 billion. This is a touch below consensus estimates due to Citi's belief that credit provisions will be higher than expected.
Gold price sinks
ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a difficult session on Tuesday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.6% to US$4,524.4 an ounce. A stronger US dollar and inflation fears weighed on the precious metal.
Coles shares downgraded
Coles Group Ltd (ASX: COL) shares have been hit with a broker downgrade from Bell Potter this morning. According to the note, the broker has downgraded the supermarket giant's shares to a hold rating (from buy) but with an improved price target of $22.80 (from $22.35). It said: "Trading a discount to WOW, there is a relative value argument to be made, particularly given the more limited exposure to discretionary channels in the near term, however we see more compelling GARP opportunities elsewhere in the consumer staples space at this juncture."
