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5 things to watch on the ASX 200 on Tuesday

On Monday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had an impressive start to the week and pushed 5,683.2 points higher.

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

ASX futures pointing higher.

The ASX 200 looks set to have another positive day of trade after U.S. markets pushed higher thanks to trade war optimism. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.3% higher on Tuesday. Late in the U.S. session the Dow Jones is up 0.5%, the S&P 500 is 0.8% higher, and the Nasdaq has climbed 1.1%.

Oil prices climb higher.

A steady share market and OPEC production cuts have led to oil prices pushing higher again overnight. According to Bloomberg, the WTI crude oil price has climbed 2% to US$48.91 a barrel and the Brent crude oil price has risen 1.4% to US$57.87 a barrel. This could give Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shares a boost today.

BlueScope Steel shares upgraded to buy.

The BlueScope Steel Limited (ASX: BSL) share price could be on the rise on Tuesday after Goldman Sachs upgraded the steel producer to a buy rating. After four consecutive months of declines, the broker believes that global steel spreads have fallen too far and expect some degree of recovery in 2019. Goldman has a buy rating and $15.28 price target on BlueScope’s shares.

Qantas added to conviction buy list.

Goldman Sachs also believes the Qantas Airways Limited (ASX: QAN) share price could run notably higher from here. The broker believes the airline industry is going to benefit from the fuel price reversal that saw the jet fuel price fall to a 14-month low of US$71 a barrel this month. Goldman has a conviction buy rating and $7.64 price target on Qantas’ shares.

Australian dollar climbs again.

The Australian dollar has continued its recovery overnight and pushed a further 0.5% higher. Weakness in the U.S. dollar has led to the Aussie climbing to 71.5 U.S. cents. This is an increase of 2.4% from where it traded (excluding the flash crash) last 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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