On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index climbed 1% to 5,460.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to surge higher.
It looks set to be fantastic day for the ASX 200. According to the latest SPI futures, the benchmark index is expected to jump 105 points or 1.9% higher at the open. This follows a great start to the week on Wall Street which saw the Dow Jones rise 3.85%, the S&P 500 climb 3.15%, and the Nasdaq index storm 2.45% higher.
Moderna coronavirus vaccine success.
The catalyst for the strong night of trade on Wall Street (and Europe) was a very successful phase one trial of a coronavirus vaccine by Moderna. According to the pharmaceutical giant's release, the early-stage human trial for a coronavirus vaccine produced COVID-19 antibodies in all 45 participants. This has sparked hopes that an effective vaccine could be ready in the near future.
Oil prices rocket.
Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could storm higher today after oil prices rocketed higher overnight. According to Bloomberg, the WTI crude oil price jumped 11.8% to US$32.89 a barrel and the Brent crude oil price stormed 9.5% to US$35.58 a barrel.
Gold price sinks lower.
After a strong day on Monday, gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could give back some of their gains on Tuesday. Overnight the gold price sank lower after investors sold off risk off assets due to the vaccine news. According to CNBC, the spot gold price fell 1.35% to US$1,732.90 an ounce.
TechnologyOne results.
The TechnologyOne Ltd (ASX: TNE) share price will be on watch today when the enterprise software company releases its half year results. With its shares changing hands at 50x estimated forward earnings, investors clearly are expecting a strong update. All eyes will be on its SaaS business which has been driving strong profit growth.
