On Tuesday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped notably lower. The benchmark index fell 2.45% to 5,221.3 points.
Will the market bounce back on Wednesday? Here are five things to watch:
ASX 200 expected to tumble lower.
It looks set to be another disappointing day for the S&P/ASX 200 index. According to the latest SPI futures, the ASX 200 is expected to open the day 107 points or 2.1% lower. This follows another very poor night on Wall Street. The Dow Jones has fallen 2.7%, the S&P 500 dropped 3.1%, and the Nasdaq index fell 3.5%.
Tech shares on watch
Popular tech shares including Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) could come under pressure today after their U.S. counterparts crashed lower last night. The technology-focused Nasdaq index dropped a sizeable 3.5% in a broad selloff. One positive, though, was that Netflix smashed expectations with its subscriber growth. It added 15.77 million new subs during the first quarter.
Oil prices crash lower again.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after another bad night for oil prices. According to Bloomberg, the WTI crude oil price futures for June crashed 34% to US$13.50 a barrel and the Brent crude oil price has fallen 21.2% to US$20.16 a barrel.
Gold price sinks despite selloff.
Unfortunately for gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST), the gold price sank lower despite the selloff. According to CNBC, the spot gold price is down 0.8% to US$1,697.60 an ounce. Investors have been moving out of equities and even gold and into cash.
Coles and Woolies reopen online shopping.
Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) shares will be on watch on Wednesday after revealing that their respective online shopping options are back. Over the last few weeks the service has been offline for most consumers due to excessive demand.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd, COLESGROUP DEF SET, Woolworths Limited, and Xero. 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.
