On Monday the S&P/ASX 200 index started the week in style, rising 0.45% to 6,648.1 points.
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 set to build on its positive start to the week with another gain on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open 0.3% or 19 points higher this morning. This follows a strong start to the week on Wall Street which saw the Dow Jones rise 0.45%, the S&P 500 climb 0.8% to a record high, and the Nasdaq push 1% higher.
Reserve Bank expected to cut rates.
This afternoon the Reserve Bank of Australia will meet to discuss the cash rate. According to the latest ASX 30 Day Interbank Cash Rate Futures for July, the market has priced in a 77% probability of a rate cut today. If the central bank does cut rates it could lead to increasing demand for income options on the share market.
OPEC agrees to extend its cuts.
Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) shares could be on the rise on Tuesday after OPEC agreed to extend its output cuts. According to Bloomberg, this led to the WTI crude oil price pushing 0.9% higher to US$59.00 a barrel and the Brent crude oil price climbing 0.4% to US$64.99 a barrel.
Gold price sinks.
Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) shares could come under pressure again on Tuesday after the gold price sank lower overnight. According to CNBC, the spot gold price tumbled 1.9% lower to US$1,386.70 an ounce after the U.S. dollar strengthened and equities pushed notably higher.
Tech shares on watch.
Australian tech shares including Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) will be on watch on Tuesday after their U.S. counterparts on the technology-focused Nasdaq index stormed higher. The US-China truce was the key driver of the positive night of trade on Wall Street.
