On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.35% to 8,474.9 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 rebound
The Australian share market is expected to rise on Tuesday after a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 62 points or 0.7% higher. In the United States, the Dow Jones was up 0.9%, the S&P 500 climbed 0.95%, and the Nasdaq stormed 0.95% higher.
Virgin Australia IPO
Qantas Airways Ltd (ASX: QAN) shares will be on watch today when Virgin Australia (ASX: VGN) returns to the ASX boards after completing its IPO. The listing is at $2.90 per share and is raising $685 million. This will allow certain existing equity holders the opportunity to realise part of their investment in the company. The company relists with its Velocity loyalty program now at approximately 13 million members, making it one of the largest loyalty programs in the country.
Oil prices crash
It could be a difficult session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 8.3% to US$67.78 a barrel and the Brent crude oil price is down 8.2% to US$70.70 a barrel. Oil prices tumbled after Iran's retaliation to the US attacks had no impact on the oil industry.
Collins Foods results
Collins Foods Ltd (ASX: CKF) shares will be on watch today when the KFC restaurant operator releases its full year results. According to a note out of Macquarie, its analysts are expecting Collins Foods to report a 2% lift in revenue to $1,519.2 million but a 26.1% decline in underlying net profit after tax to $44.3 million. It said: "Retain Neutral. Valuation is becoming more compelling following the selloff over recent months, but we await a resetting of market expectations before becoming more positive."
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a reasonably positive session after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.15% to US$3,391.1 an ounce. Safe haven demand gave the precious metal a boost.
