On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back the previous day's gain with a sharp decline. The benchmark index fell 0.9% to 6,777.8 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to rebound
It looks set to be a good day for the Australian share market after a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.8% higher this morning. In late trade in the United States, the Dow Jones is up 1.4%, the S&P 500 is up 1.1%, and the Nasdaq index has risen 0.8%.
Afterpay half year results
All eyes will be on the Afterpay Ltd (ASX: APT) share price when the payments company releases its half year results. According to a note out of Morgan Stanley, the broker is expecting Afterpay to report active customers of approximately 13.6 million for the first half of FY 2021. This represents a 37.4% increase from 9.9 million active customers at the end of FY 2020. Updates on its international expansion in Europe and Asia will also be of interest to investors. Zip Co Ltd (ASX: Z1P) is also releasing its update.
Oil prices charge higher
It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices charged higher. According to Bloomberg, the WTI crude oil price is up 2.5% to US$63.19 a barrel and the Brent crude oil price is up 2.6% to US$67.07 a barrel. Oil prices rose amid continued outages in the United States and a weaker US dollar.
A2 Milk half year update
The A2 Milk Company Ltd (ASX: A2M) share price could be on the move today when it hands in its half year results. Late last year the infant formula company downgraded its guidance for the first half and full year due to weakness in the daigou channel. For the first half it expects to report revenue of ~NZ$670 million with an EBITDA margin of ~27%. For the full year, it has guided to revenue of NZ$1.4 billion to NZ$1.55 billion and an EBITDA margin of 26% to 29%.
Gold price falls again
Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure after the gold price softened further. According to CNBC, the spot gold price has fallen 0.5% to US$1,796.40 an ounce. Rising US treasury yields are weighing on the price of the precious metal.
