The S&P/ASX 200 Index (ASX: XJO) was well and truly on form on Wednesday and stormed notably higher. The benchmark index jumped 1.9% to 6,052.9 points.
Will the market be able to build on this on Thursday? Here are five things to watch:
ASX 200 expected to rise again.
The ASX 200 index looks set to continue its positive run on Thursday. According to the latest SPI futures, the ASX 200 is poised to open the day 22 points or 0.35% higher this morning. This follows another solid night of trade on Wall Street which saw the Dow Jones rise 0.9%, the S&P 500 jump 0.9%, and the Nasdaq climb 0.6%. Promising coronavirus vaccine news helped drive markets higher.
Moderna vaccine update.
U.S. markets charged higher overnight after biotech company Moderna provided an update on its coronavirus vaccine. According to CNBC, peer reviewed data published by the New England Journal of Medicine showed Moderna's coronavirus vaccine produced a robust immune response in all 45 patients in its early stage human trial. This gave stocks directly tied to an economic reopening a real boost.
Oil prices jump.
It could be a good day for energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices jumped higher. According to Bloomberg, the WTI crude oil price is up 1.8% to US$41.00 a barrel and the Brent crude oil price has risen 1.7% to US$43.64 a barrel. A combination of the vaccine news and a stronger than expected inventory draw in the United States helped drive oil prices higher.
Gold price flat.
It looks set to be a mixed day for gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after another flat night of trade for the precious metal. According to CNBC, the spot gold price is unchanged at US$1,813.40 an ounce. The aforementioned vaccine news appears to have offset rising tensions between the U.S. and China.
Telstra rated as a buy.
Analysts at Goldman Sachs have been busy looking at how the second wave might impact Telstra Corporation Ltd (ASX: TLS). While it notes that its productivity plans may be delayed, it sees upside risk to medium term earnings. In light of this, the broker has held firm with its conviction buy rating and lifted its price target on the Telstra share price slightly to $4.10.
