On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued manner and recorded a small decline. The benchmark index fell a few points to 6,669.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to fall.
The Australian share market looks set to drop lower on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.4% lower this morning. This follows a mixed start to the week on Wall Street. In late trade the Dow Jones is up 0.25%, the S&P 500 is down 0.35%, and the Nasdaq has fallen 0.2%.
AGL Energy rated neutral
The AGL Energy Limited (ASX: AGL) share price sank lower on Monday after downgrading its guidance for FY 2021. One leading broker that isn't rushing in to buy shares is Goldman Sachs. Its analysts have retained their neutral rating and cut the price target on the energy company's shares to $14.10. On Monday AGL downgraded its net profit after tax guidance from $560 million-$660 million to $500 million-$580 million. This represents an 11% reduction at the midpoint.
Oil prices sink lower.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 2.8% to US$47.73 a barrel and the Brent crude oil price has fallen 2.8% to US$50.81 a barrel. A new COVID-19 strain has fuelled demand concerns.
Gold price softens.
Gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure after the gold price softened. According to CNBC, the spot gold price has fallen 0.3% to US$1,883.50 an ounce.
Pfizer COVID-19 vaccine approved in Europe.
The European Medicines Agency has authorised the Pfizer COVID-19 vaccine in people ages 16 and older. In light of this, Europe is on track to start vaccinations within a week. According to CNBC, vaccine authorisations are picking up pace on the continent just as countries tighten their lockdowns amid a deadlier winter wave of infections.
