On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note and stormed notably higher. The benchmark index climbed 1% to 5,977.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 set to give back some gains.
The ASX 200 looks set to give back some of yesterday’s gain on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 47 points or 0.8% lower. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones trade flat, the S&P 500 drop 0.9%, and the Nasdaq sink 2.1% lower.
Oil prices drop.
Energy producers Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could come under pressure today after oil prices dropped lower. According to Bloomberg, the WTI crude oil price fell 2.4% to US$39.56 a barrel and the Brent crude oil price dropped 2.4% to US$42.22 a barrel. Oil prices fell ahead of the next OPEC meeting.
Tech shares on watch.
It could be a difficult day of trade for tech shares such as Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) on Tuesday after their U.S. counterparts sank lower. Overnight on Wall Street the technology-focused Nasdaq index was up as much as 1.9% before ending the day 2.1% lower. Investors appear to have been taking profit off the table after the index broke through the 11,000 points mark for the first time.
Gold price edges higher.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price edged higher. According to CNBC, the spot gold price rose 0.15% to US$1,804.70 an ounce after coronavirus cases continued to increase
AMP downgraded.
The AMP Limited (ASX: AMP) share price will be on watch today after the financial services company revealed that it has been downgraded by Standard and Poor’s. The ratings agency has lowered its rating on AMP from BBB+ to BBB. It is also on credit watch with negative implications.
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More reading
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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 Xero. The Motley Fool Australia owns shares of Appen Ltd. 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.
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