On Monday the S&P/ASX 200 Index (ASX: XJO) bounced back from a heavy early decline to record a strong gain. The benchmark index rose 0.85% to 6,663 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 poised to rise.
The ASX 200 looks set to continue its recovery on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% higher this morning. This follows a positive start to the week on Wall Street, which in late trade sees the Dow Jones up 0.85%, the S&P 500 1.7% higher, and the Nasdaq up a sizeable 2.6%.
Credit Corp kicks off earnings season
Earnings season kicks off this morning with the release of the Credit Corp Group Limited (ASX: CCP) half year result. According to a note out of Morgans, the debt collection company is expected to deliver a strong result. Its analysts expect cash collections to be up 10% on the prior corresponding period and half year net profit to be up 2.5%. Though, the broker sees upside risk to its profit estimates.
Oil prices storm higher
It looks set to be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) on Tuesday after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.3% to US$53.41 a barrel and the Brent crude oil price has risen 2.3% to US$56.29 a barrel. Oil prices pushed higher after inventories declined and demand picked up.
Gold price rises
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.65% to US$1,859.40 an ounce. Also of note, the silver price jumped 9% overnight as Reddit traders try to squeeze the precious metal.
Reserve Bank meeting
This afternoon the Reserve Bank of Australia will be holding its first meeting of 2021 and will discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 75% probability of a cut to zero. This would be more bad news for income investors, who will potentially have to contend with even lower rate interest rates on savings accounts and term deposits.