On Monday the S&P/ASX 200 index had a disappointing start to the week. With declines being seen across the board, the benchmark index dropped almost 1.2% to 6,672.2 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX poised to rise.
The Australian share market looks set to rebound slightly from yesterday's sizeable decline. According to the latest SPI futures, the ASX 200 index is poised to open the day 3 points higher this morning. This is despite a weak start to the week on Wall Street which saw the Dow Jones fall 0.4%, the S&P 500 slide 0.5%, and the Nasdaq tumble 0.8% lower.
Oil prices lower.
Australian energy producers Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) will be on watch today after oil prices edged lower. According to Bloomberg, the WTI crude oil price fell 0.1% to US$57.46 a barrel and the Brent crude oil price dropped 0.5% to US$63.90 a barrel.
Metcash shares go ex-dividend.
The Metcash Limited (ASX: MTS) share price is likely to trade lower this morning after the wholesale distributor trades ex-dividend for its final fully franked 7 cents per share dividend. Eligible shareholders can look forward to being paid this dividend on August 7.
Afterpay shares downgraded.
The Afterpay Touch Group Ltd (ASX: APT) share price could come under pressure today after the payments company was downgraded by a leading broker. According to a note out of Goldman Sachs, its analysts have downgraded Afterpay's shares to a neutral rating from a conviction buy rating on valuation grounds following a strong run. Goldman has a $27.15 price target on its shares.
Gold price lower.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) could trade lower today after the gold price weakened again. According to CNBC, the spot gold price fell 0.2% to US$1,397.40 an ounce after aggressive rate cut hopes fizzled out in the United States.
