On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a disappointing note. The benchmark index fell 2.45% to 5,353 points.
Will the market bounce back on Tuesday? Here are five things to watch:
ASX 200 expected to drop lower again.
The S&P/ASX 200 index looks set to continue its slide on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 55 points or 1% lower. This follows a very poor start to the week on Wall Street. The Dow Jones fell 2.45%, the S&P 500 dropped 1.8%, and the Nasdaq index fell 1%.
Oil prices crash lower following crazy night.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after one of the craziest nights in oil market history. According to Bloomberg, the WTI crude oil futures price crashed a whopping 198% to minus US$18.00 a barrel and the Brent crude oil price has fallen 7.3% to US$26.04 a barrel. Oil futures have gone negative to reflect the fact that demand is so weak it now costs money to store the product for future usage.
Gold price rebounds.
Chaos in oil markets have given the gold price a boost overnight, which should be good news for gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST). According to CNBC, the spot gold price is up 0.75% to US$1,711.50 an ounce.
BHP quarterly update.
BHP Group Ltd (ASX: BHP) becomes the latest mining giant to release its quarterly update after Rio Tinto Limited (ASX: RIO) last week and South32 Ltd (ASX: S32) on Monday. Expectations are high for the Big Australian after Rio Tinto impressed the market with its strong performance.
Elective surgeries to resume?
The Ramsay Health Care Limited (ASX: RHC) share price could be given a boost on Tuesday. The Federal Government is widely expected to allow elective surgeries to resume after Australia managed to flatten the coronavirus curve. This would also be a positive for Cochlear Limited (ASX: COH), which relies on elective surgeries for its hearing implants.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. 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.
