On Tuesday the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed notably higher. The benchmark index rose 0.8% to 6,123.4 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 to edge lower.
The benchmark ASX 200 is expected to edge lower on Wednesday morning. According to the latest SPI futures, the benchmark index is poised to open the day 6 points of 0.1% lower. This follows a mixed night of trade on Wall Street which saw the Dow Jones fall 0.25%, but the S&P 500 rise 0.2% and the Nasdaq storm 0.7% higher.
A2 Milk Company FY 2020 results.
The A2 Milk Company Ltd (ASX: A2M) share price will be on watch today when it releases its full year results for FY 2020. The infant formula company has provided revenue guidance of NZ$1,700 million to NZ$1,750 million. According to CommSec, the market is expecting the company to report a net profit after tax of NZ$389 million. This will be a 35% increase on FY 2019’s net profit after tax of NZ$287.7 million.
CSL to hand in its results.
Another big result release on Wednesday comes from CSL Limited (ASX: CSL). According to CommSec, the market is expecting the biotherapeutics giant to post a net profit after tax of US$2.11 billion. However, the main focus is arguably going to be on management’s outlook for FY 2021. This is because there are concerns that COVID-related disruptions to plasma collections could weigh heavily on its performance this year.
Oil prices soften.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure today after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$42.58 a barrel and the Brent crude oil price is down 0.6% to US$45.10 a barrel. This appears to have been driven by a spot of profit taking after solid gains the day before.
Gold price breaks through US$2,000 mark again.
It could be a positive day for gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) after the gold price broke through the US$2,000 an ounce mark again. According to CNBC, the spot gold price is up 0.7% to US$2,012.30 an ounce. Weakness in the U.S. dollar and Warren Buffett’s investment in the space are supporting the precious metal.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. 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.
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