On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index sank 1.25% to 6,517.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to edge lower.
The Australian share market looks set to start the month in a subdued manner. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points lower this morning. This follows a poor start to the week on Wall Street, which in late trade sees the Dow Jones down 1.2%, the S&P 500 down 0.7%, and the Nasdaq down 0.2%.
Collins Foods half year result.
The Collins Foods Ltd (ASX: CKF) share price will be one to watch this morning when it hands in its half year results. The KFC and Taco Bell operator has been a positive performer during the pandemic and delivered strong sales and earnings growth. Expectations are high for FY 2021, with more of the same being forecast in the first half. Investors will also be keen to see how its European businesses are faring given the rising COVID cases on the continent.
Oil prices tumble lower.
Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 1.6% to US$44.80 a barrel and the Brent crude oil price has fallen 1.5% to US$47.47 a barrel. Concerns over OPEC’s output plans are weighing on prices.
Moderna COVID vaccine update.
Moderna has revealed new data from its trials which shows that its COVID-19 vaccine is more than 94% effective. In light of this, the company plans to ask the US FDA for emergency clearance. This will mean that some people in America could get the first dose of its two-dose vaccine within a few weeks.
Gold price continues to fall.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough day after the gold price dropped lower again. According to CNBC, the spot gold price is down 0.25% to US$1,784.10 an ounce. This may be due to Moderna’s vaccine update.
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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods Limited. 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.