On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with its worst daily decline in three decades. The benchmark index fell 9.7% to 5,002 points.
Will the local share market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall again.
It looks set to be another disappointing day of trade for the ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open the day 228 points or 4.5% lower this morning. This follows a bad start to the week on Wall Street which in late trade sees the Dow Jones down 12%, the S&P 500 down 11%, and the Nasdaq index 11.1% lower. Wall Street reacted negatively to President Trump warning that the coronavirus could be around until July or August.
Oil prices crash lower.
Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could slide lower today after oil prices tanked. According to Bloomberg, the WTI crude oil price is down 9.4% to US$28.74 a barrel and the Brent crude oil dropped 11.9% to US$29.82 a barrel. Traders were selling oil after demand dropped materially.
Gold price tumbles lower.
Gold miners including Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) could come under pressure again after the gold price continued to slide. According to CNBC, the spot gold price is down 1.5% to US$1,493.40 an ounce. Despite being a safe haven asset, gold was not immune from the global market selloff.
Rio Tinto COVID-19 update.
The Rio Tinto Limited (ASX: RIO) share price will be on watch today after providing an update on its Oyu Tolgoi operation. According to the release, Oyu Tolgoi is operating in accordance with the restrictions the Mongolian authorities have put in place to contain the spread of COVID-19. This means work on the Underground Project continues, however, progress is being slowed as a result of these measures.
CBA ASIC proceedings.
The Commonwealth Bank of Australia (ASX: CBA) share price could be on the move today after it acknowledged that civil proceedings have been commenced by the Australian Securities and Investments Commission (ASIC) in the Federal Court. This is in relation to two matters referred to ASIC for investigation by the Royal Commission. Commonwealth Bank intends to admit to the allegations and will not defend the proceedings.
