On Monday the S&P/ASX 200 index started the week on a positive note with a 0.5% gain to 6,825.8 points.
Will the local market be able to build on this on Tuesday and rise to a record high? Here are five things to watch:
ASX 200 aiming for a record high.
The benchmark S&P/ASX 200 index looks set to continue its positive form and could hit a record high on Tuesday. According to the latest SPI futures, the ASX 200 index is poised to open the day 33 points or 0.5% higher this morning. This is despite it being a mixed night on Wall Street which saw the Dow Jones edge 0.1% higher, the S&P 500 index drop 0.15%, and the Nasdaq fall 0.45%.
Oil prices higher.
Australian energy shares Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Monday after oil prices climbed higher overnight. According to Bloomberg, the WTI crude oil price rose 1.3% to US$56.91 a barrel and the Brent crude oil price climbed 0.4% to US$63.70 a barrel ahead of US-China trade talks.
Tech shares could come under pressure.
Tech shares such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) rose strongly on Monday, leading to the S&P/ASX 200 Info Tech index storming 1.85% higher. Unfortunately, the sector could give back some of these gains on Tuesday after the technology-focused Nasdaq index tumbled lower. The Nasdaq index ended the day down 0.45%.
Gold price on the rise.
It looks set to be a positive day of trade for the likes of Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) after the gold price pushed higher overnight. According to CNBC, the spot gold price climbed 0.5% to US$1,426.60 an ounce. Traders appear confident that the U.S. Federal Reserve will be cutting rates this week.
BHP and Rio Tinto set to rise.
The shares of mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) look set to rise on Tuesday following a solid night of trade for their U.S. and UK listed shares. In London BHP's shares rose 2% and Rio Tinto's shares climbed over 1.5%. Investors appear optimistic ahead of US-China trade talks.
