On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note and recorded a strong gain. The benchmark index rose 0.85% to 6,229.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall.
The Australian share market is set to give back some of yesterday’s gain after a poor start to the week on global markets. According to the latest SPI futures, the ASX 200 is poised to fall 40 points or 0.65% at the open. In late trade on Wall Street the Dow Jones is down 1.4%, the S&P 500 has dropped 1.6%, and the Nasdaq is 1.6% lower. Concerns that a stimulus deal in the U.S. won’t be signed is weighing on markets.
Oil prices drop lower.
It could be a poor day for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) on Tuesday. According to Bloomberg, the WTI crude oil price has dropped 0.6% to US$40.64 a barrel and the Brent crude oil price is down 1.15% to US$42.44 a barrel. Oil prices dropped lower amid concerns over the stimulus package and on Libya’s plan to boost its output.
CSL R&D Investor Briefing.
The CSL Limited (ASX: CSL) share price could be on the move when it holds its annual research and development (R&D) investor briefing. One treatment of interest is EtranaDez, which was acquired from uniQure this year for US$450 million. It is a new gene therapy undergoing phase 3 trials as a treatment for haemophilia B. In FY 2020, the biotherapeutics giant invested US$922 million in its R&D. This doesn’t include the EtranaDez acquisition.
Gold price edges lower.
Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) will be on watch after a subdued start to the week for the gold price. According to CNBC, the spot gold price has dropped 0.1% to US$1,905.50 an ounce. Once again, this appears to have been driven by concerns that a U.S. stimulus package is still a long way from being agreed.
BHP quarterly update.
The BHP Group Ltd (ASX: BHP) share price will be on watch today when it releases its first quarter update. According to a note out of Goldman Sachs, it expects the mining giant to report Petroleum production of 26Mboe, Copper production of 365kt, and iron ore shipments of 71.5Mt. The latter represents a 7% quarter on quarter decline in shipments
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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 CSL Ltd. 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.
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