On Tuesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains to finish the day lower. The benchmark index fell 0.65% to 5,252.3 points.
Will the local share market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 poised to fall.
The S&P/ASX 200 index looks set to drop lower again on Wednesday. According to the latest SPI futures, the benchmark index is expected to fall 41 points or 0.8% at the open. On Wall Street the Dow Jones was up 900 points, but ended down 0.2%. The S&P 500 fell 0.15%, and the Nasdaq dropped 0.3%.
Oil prices tumble.
The shares of energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could drop lower today after oil prices weakened further. According to Bloomberg, the WTI crude oil price sank 6.5% to US$24.40 a barrel and the Brent crude oil price fell 1.4% to US$32.59 a barrel. Oversupply concerns weighed heavily on prices.
Bank of Queensland result.
The Bank of Queensland Limited (ASX: BOQ) share price will be on watch today when the regional bank releases its half year results. This makes it the first bank to release its number since the COVID-19 outbreak hit Australia. According to Goldman Sachs, it expects the bank to report first half cash earnings of $119 million. This will be a 29% decline on the prior corresponding period. An interim dividend of 25 cents per share is also expected.
Gold price pulls back.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price pulled back. According to CNBC, the spot gold price is down 0.8% to US$1,680.50 an ounce. Traders were selling gold amid signs that countries were making progress against the coronavirus.
Banks downgraded by Fitch.
Following an assessment of the economic impact of the COVID-19 pandemic on the Australian and New Zealand economies, Fitch Ratings has downgraded its long-term ratings for the major Australian banks by one notch, to A+ (from AA-). While not unexpected, this could put a bit of pressure on Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
