The S&P/ASX 200 Index started the week in fine form on Monday, rising an impressive 0.65% to 6,221.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX expected to open higher.
The Australian share market is expected to open the day higher on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 0.1% or 8 points higher this morning. This is despite it being a mixed night of trade on Wall Street which late in the session sees the Dow Jones down 0.3%, the S&P 500 up 0.1%, and the Nasdaq climbing 0.2% higher.
Oil prices hit five-month highs.
Australian energy shares such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) are likely to trade higher on Tuesday after oil prices surged to five-month highs due to supply concerns following clashes in Libya. According to Bloomberg, the WTI crude oil price has climbed a further 2.2% to US$64.46 a barrel and the Brent crude oil price has risen 1.1% to US$71.10 a barrel.
Gold price climbs higher.
Gold miners including Resolute Mining Limited (ASX: RSG) and St Barbara Ltd (ASX: SBM) will be on watch on Tuesday after the spot gold price climbed above the US$1,300 mark again. According to CNBC, the spot gold price is up 0.5% to US$1,302 an ounce thanks partly to a weakening dollar.
Iron ore prices rise.
BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could continue their impressive runs on Tuesday after iron ore prices rose again on Monday. Strong demand for steel in China and supply concerns in Brazil and Australia have taken the benchmark 62% fines close to a five-year high.
South32 shares downgraded.
The South32 Ltd (ASX: S32) share price could trade lower on Tuesday after analysts at Goldman Sachs downgraded its shares to a sell rating on valuation grounds. In addition to this, the broker believes the mining giant will have had a weak March quarter. Goldman has a price target of $3.20 on its shares, compared to its last close price of $3.88.
