On Monday the S&P/ASX 200 Index (ASX: XJO) continued its impressive run and stormed higher. The benchmark index rose 1.75% to 6,298.8 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 poised to surge higher.
It looks set to be a great day of trade for the Australian share market amid positive vaccine news in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day a massive 179 points or 2.8% higher this morning. In late trade on Wall Street the Dow Jones is up 4.75%, the S&P 500 has climbed 3%, and the Nasdaq is up 0.5%.
Pfizer vaccine more than 90% effective.
The catalyst for the strong gains on Wall Street has been a COVID-19 vaccine update by healthcare giant Pfizer. According to its announcement, the vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants without evidence of prior SARS-CoV-2 infection in the first interim efficacy analysis. The study enrolled 43,538 participants, with 42% having diverse backgrounds, and no serious safety concerns have been observed.
Oil prices jump higher.
It could be a very positive day for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) after the vaccine news sent oil prices hurtling higher. According to Bloomberg, the WTI crude oil price jumped 8.8% higher to US$40.40 a barrel and the Brent crude oil price is up 7.7% to US$42.50 a barrel.
Gold price crashes lower.
Safe haven assets like gold took a big hit overnight after investor sentiment improved materially. This could be bad news for gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, the spot gold price has sunk 4.65% lower to US$1,861.40 an ounce.
Domain AGM.
The Domain Holdings Australia Ltd (ASX: DHG) share price will be on watch on Tuesday when it holds its virtual annual general meeting. The property listings company is likely to release a trading update with its presentation. Expectations are high after rival REA Group Limited (ASX: REA) smashed expectations with its first quarter update last week.
