On Monday the S&P/ASX 200 index started the week on a bitterly disappointing note after trade war concerns weighed heavily on investor sentiment. The benchmark index fell a sizeable 1.9% to 6,640.3 points.
Will the local market be able to bounce back on Tuesday? Here are five things to watch:
ASX 200 expected to sink lower again.
The S&P/ASX 200 index looks set to continue its slide after another heavy decline on Wall Street overnight. According to the latest SPI futures, the ASX 200 index is poised to open the day 98 points or 1.5% lower this morning. On Wall Street the Dow Jones had its worst day of 2019 with a 2.9% decline, the S&P 500 index fell 3%, and the Nasdaq index tumbled 3.5% lower.
Gold price hits a six-year high.
Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) shares could continue their positive run on Tuesday after the market meltdown led to the gold price storming to a six-year high. According to CNBC, at the time of writing the spot gold price is up 1.3% to US$1,476.10 an ounce.
Tech shares on watch again.
Australian tech shares such as Afterpay Touch Group Ltd (ASX: APT) and Nearmap Ltd (ASX: NEA) were amongst the worst performers on the ASX 200 index on Monday following a tech sell off. Their shares will be on watch again on Tuesday after their U.S. counterparts dropped lower again overnight. The technology-focused Nasdaq index started the week with a sizeable decline of 3.5%.
Oil prices sink lower.
It looks set to be a day in the red for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) on Tuesday after oil prices sank lower overnight. According to Bloomberg, the WTI crude oil price has fallen 1.3% to US$54.95 a barrel and the Brent crude oil price has dropped 3% to US$60.00 a barrel.
Australian dollar continues to slide.
The Australian dollar has continued to slide against the U.S. dollar. Overnight the Aussie dropped a further 0.5% to 67.59 U.S. cents, bringing its year to date decline to over 8.5%. The local currency could come under further pressure today if the Reserve Bank of Australia opts to cut rates again at its August meeting.
