On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a stunning start to the week. The benchmark index finished the day over 1.8% higher at 5,771.2 points.
Will the ASX 200 be able to build on this on Tuesday? Here are five things to watch:
ASX futures pointing lower.
According to the latest SPI futures, the ASX 200 is expected to open the day 0.3% or 18 points lower on Tuesday. This is despite a positive night of trade on Wall Street which sees the Dow Jones up 1%, the S&P 500 0.9% higher, and the Nasdaq up 1.15% in late trade.
Oil prices storm higher.
Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shares were amongst the best performers on the market on Monday thanks to a recovery in oil prices. This good form could continue again today after a strong night of trade for oil prices. According to Bloomberg, the WTI crude oil price climbed 4.2% to US$53.06 a barrel and the Brent crude oil price rose 4.1% to US$61.88 a barrel.
Aristocrat Leisure goes ex-dividend.
The Aristocrat Leisure Limited (ASX: ALL) share price is likely to trade a touch lower on Tuesday. This morning its shares will trade ex-dividend for its 27 cents per share fully franked final dividend. Eligible shareholders will receive this dividend in their nominated accounts on December 19.
Metcash rated as a buy.
The Metcash Limited (ASX: MTS) share price fell heavily on Monday after the wholesale distributor's half year result fell short of expectations. One broker that is sticking with the company is Goldman Sachs. A note out of the investment bank this morning reveals that it has Metcash on its conviction buy list with a $3.30 price target. Goldman continues to see opportunity for the company to demonstrate a resilient earnings outlook while returning capital to shareholders.
BHP and Rio Tinto on watch.
BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) will be on watch on Tuesday after their U.S. and U.K. listed shares rocketed higher. In late trade the BHP share price is up 5% on Wall Street and in the U.K. the Rio Tinto share price closed 4% higher after base metal prices charged higher.
