On Tuesday the S&P/ASX 200 Index (ASX: XJO) followed the lead of global markets and dropped lower. The benchmark index fell 1.05% to 6,599.6 points.
Will the market be able to bounce back from this on Wednesday? Here are five things to watch:
ASX 200 to rebound.
It looks set to be a much more positive day for the Australian share market on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.9% higher this morning. This is despite a mixed night of trade on Wall Street. In late trade the Dow Jones is down 0.35%, the S&P 500 is flat, and the Nasdaq is up 0.45%.
US congress passes COVID stimulus package.
The US Congress has passed a massive COVID-19 relief and government spending package. It finally made the move with the aim of injecting long-delayed aid into the fight against a once-in-a-century health and economic crisis. According to CNBC, both chambers approved the more than US$2 trillion legislation. This comprises US$900 billion in pandemic aid and US$1.4 trillion to fund the government through to 30 September.
Oil prices soften further.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another tough day after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 1.8% to US$47.09 a barrel and the Brent crude oil price has fallen 1.4% to US$50.22 a barrel. Once again, the new COVID-19 strain in Europe has fuelled demand recovery concerns.
Gold price falls.
Gold miners such as Evolution Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure after the gold price dropped lower again. According to CNBC, the spot gold price has fallen 0.8% to US$1,868.20 an ounce. A stronger US dollar weighed on the price of the precious metal.
Omni Bridgeway given conviction buy rating.
The Omni Bridgeway Ltd (ASX: OBL) share price could be dirt cheap according to one leading broker. A note out of Goldman Sachs reveals that it has reiterated its conviction buy rating and $5.50 price target. This compares to its current $3.78 price target. Goldman believes the company is positioned for any class action regulation changes and growth offshore.
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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
