On Wednesday the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped lower. The benchmark index fell 0.4% to 5,466.7 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to fall.
It looks set to be a disappointing day of trade for the S&P/ASX 200 index. According to the latest SPI futures, the benchmark index is expected to open 117 points or 2.1% lower this morning. This follows a poor night of trade on Wall Street which saw the Dow Jones fall 1.9%, the S&P 500 drop 2.2%, and the Nasdaq down 1.4%. This was driven by weak economic data in the United States.
Bank shares on watch.
Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four will be on watch today after U.S. banks were sold off. The worst offender was the Bank of America share price which closed more than 6% lower on the back of disappointing earnings. Elsewhere, Citigroup's shares fell more than 5% during overnight trade.
Oil prices mixed.
Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price climbed 0.8% to US$20.27 a barrel and the Brent crude oil price has fallen 5.8% to US$27.92 a barrel. Oil prices dropped to 18-year lows amid concerns over rising inventories.
Gold price tumbles.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could come under pressure today after the gold price tumbled lower. According to CNBC, the spot gold price is down 1.5% to US$1,742.80 an ounce. A stronger U.S. dollar weighed on the precious metal.
Rio Tinto dividend.
Eligible Rio Tinto Limited (ASX: RIO) shareholders can look forward to being paid the mining giant's latest dividend today. Rio Tinto is paying a final fully franked $3.50 per share dividend, which equates to a sizeable 3.9% yield. The miner will be back in the spotlight on Friday when it releases its third quarter update.
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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.
