On Monday the S&P/ASX 200 index started the week on a positive note, rising a solid 0.6% to 6,217 points thanks partly to positive economic data out of China.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX futures pointing higher.
The Australian share market looks likely to continue its push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 0.5% or 30 points higher. This follows a very positive night of trade on Wall Street which late in the session sees the Dow Jones 1.1% higher, the S&P 500 up 1%, and the Nasdaq up 1.2%.
Budget day.
This evening sees the release of the Federal Budget. With an election on the horizon and the Coalition government lagging in the polls, experts are tipping this Budget to be a particularly generous one. Income tax cuts are largely expected to be announced, which could be good news for Australian retailers if consumers can be convinced to spend their increased disposable income in their stores.
Oil prices rocket higher.
Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) shares could be on the rise on Tuesday after oil prices rocketed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.4% to US$61.58 a barrel and the Brent crude oil price is 2.2% higher at US$69.04 a barrel. This was driven by positive global economic data and tighter supplies.
Gold price down.
Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) shares will be on watch on Tuesday after the gold price dropped lower. According to CNBC, the spot gold price is trading 0.4% lower at US$1,293 an ounce after investors rotated out of risk off assets.
Dividends being paid.
A number of popular shares will be paying their shareholders a dividend on Tuesday. These include steel producer BlueScope Steel Limited (ASX: BSL), private health insurer NIB Holdings Limited (ASX: NHF), and insurance and banking giant Suncorp Group Ltd (ASX: SUN).
