The S&P/ASX 200 Index (ASX: XJO) looks set to continue its positive run on Tuesday after very promising coronavirus vaccine news.

At the time of writing, SPI futures are pointing to 2% or 199 points gain for the benchmark index at the open.

This follows a strong night in Europe and on Wall Street which saw the FTSE jump 4.3%, the DAX rise 5.7%, the Dow Jones gain 3.85%, the S&P 500 climb 3.15%, and the Nasdaq index storm 2.45% higher.

What is the vaccine news?

Investors were piling into the share market on Monday night after American biotechnology company Moderna released phase one trial results for its coronavirus vaccine candidate, mRNA-1273.

Moderna’s 45 person trial included three dose groups of 15 receiving either a 25, 100 or 250 microgram dose. The participants received two doses of the potential vaccine through an intramuscular injection in the upper arm. These were made approximately 28 days apart.

Today’s results revealed that its vaccine produced COVID-19 antibodies in all 45 participants.

Moderna’s Chief Medical Officer, Tal Zaks, M.D., Ph.D., was very pleased with the results.

He said: “These interim Phase 1 data, while early, demonstrate that vaccination with mRNA-1273 elicits an immune response of the magnitude caused by natural infection starting with a dose as low as 25 µg.”

“When combined with the success in preventing viral replication in the lungs of a pre-clinical challenge model at a dose that elicited similar levels of neutralizing antibodies, these data substantiate our belief that mRNA-1273 has the potential to prevent COVID-19 disease and advance our ability to select a dose for pivotal trials.”

Moderna is now aiming to get a phase 3 trial underway in July. If this is successful it could mean a vaccine will be ready much sooner than anyone expected.

The company’s chief executive officer, Stéphane Bancel, said: “With today’s positive interim Phase 1 data and the positive data in the mouse challenge model, the Moderna team continues to focus on moving as fast as safely possible to start our pivotal Phase 3 study in July and, if successful, file a BLA.”

“We are investing to scale up manufacturing so we can maximize the number of doses we can produce to help protect as many people as we can from SARS-CoV-2,” he concluded.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 climbs 1% in positive start to the week
• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• Why ASX iron ore miners like BHP aren’t afraid of the China trade war
• 3 top Warren Buffett quotes to start off your week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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There has been a bit of talk recently of negative interest rates in Australia because of the pandemic.

While I don’t expect the Reserve Bank to go as far as this, it is of course a real possibility. But whatever happens, interest rates are likely to be at ultra low levels for a long time to come.

In light of this, I would suggest investors skip term deposits and savings accounts and look to the share market for income.

Three top dividend shares I would buy today are as follows:

BWP Trust (ASX: BWP)

The first dividend share to consider buying is BWP. It is a real estate investment trust with a focus on warehouses. Most of BWP’s warehouses are leased to hardware giant Bunnings, which is owned by Wesfarmers Ltd (ASX: WES). While relying heavily on a single customer can be risky, it is worth noting that Wesfarmers is also a major shareholder with a ~23.6% stake in BWP. As a result, it is unlikely it will do anything that would negatively impact BWP’s performance and share price. At present I estimate that it offers investors a forward 5.2% yield.

Coles Group Ltd (ASX: COL)

Another dividend share to consider buying is this supermarket giant. I’m a big fan of Coles due to its ability to grow whatever economic conditions it is facing. This has been demonstrated during the pandemic. In addition to this, with Coles aiming to cut costs materially and leverage new technologies, I expect its margins to improve over the next decade and support solid earnings and dividend growth. In FY 2021 I estimate that its shares will provide investors with a fully franked dividend yield of 4.1%.

Commonwealth Bank of Australia (ASX: CBA)

A final dividend share to consider buying is Commonwealth Bank. Its shares have been hammered this year and are down significantly from their 52-week high. While a decline is not unwarranted due to the negative impact of the pandemic, I think the selling has been overdone. In light of this, I think now could be a good time to consider a patient investment in its shares. I expect Commonwealth Bank to cut its dividend down to ~$3.70 per share in FY 2021. Based on this, its shares offer an estimated forward fully franked yield of 6.3%.

More reading

• Latest ABS data reveals how Australians are responding to COVID-19
• The importance of diversifying your ASX portfolio and how you can do it
• 3 ASX 200 shares to watch this week
• ASX 200 Weekly Wrap: Gold miners help edge ASX ever higher
• 5 ASX 200 winners and 5 losers of the week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. 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.

The post Forget term deposits and buy these top ASX dividend shares appeared first on Motley Fool Australia.

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index climbed 1% to 5,460.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to surge higher.

It looks set to be fantastic day for the ASX 200. According to the latest SPI futures, the benchmark index is expected to jump 105 points or 1.9% higher at the open. This follows a great start to the week on Wall Street which saw the Dow Jones rise 3.85%, the S&P 500 climb 3.15%, and the Nasdaq index storm 2.45% higher.

Moderna coronavirus vaccine success.

The catalyst for the strong night of trade on Wall Street (and Europe) was a very successful phase one trial of a coronavirus vaccine by Moderna. According to the pharmaceutical giant’s release, the early-stage human trial for a coronavirus vaccine produced COVID-19 antibodies in all 45 participants. This has sparked hopes that an effective vaccine could be ready in the near future.

Oil prices rocket.

Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could storm higher today after oil prices rocketed higher overnight. According to Bloomberg, the WTI crude oil price jumped 11.8% to US$32.89 a barrel and the Brent crude oil price stormed 9.5% to US$35.58 a barrel.

Gold price sinks lower.

After a strong day on Monday, gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could give back some of their gains on Tuesday. Overnight the gold price sank lower after investors sold off risk off assets due to the vaccine news. According to CNBC, the spot gold price fell 1.35% to US$1,732.90 an ounce.

TechnologyOne results.

The TechnologyOne Ltd (ASX: TNE) share price will be on watch today when the enterprise software company releases its half year results. With its shares changing hands at 50x estimated forward earnings, investors clearly are expecting a strong update. All eyes will be on its SaaS business which has been driving strong profit growth.

More reading

• ASX 200 climbs 1% in positive start to the week
• Why this overlooked ASX 200 stock just got upgraded by 3 leading brokers to “buy”
• Why ASX iron ore miners like BHP aren’t afraid of the China trade war
• 3 top Warren Buffett quotes to start off your week
• How is the ASX 200 soaring despite rising unemployment?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.

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