On Monday the S&P/ASX 200 index started the week with the smallest of gains. The benchmark index rose half a point to 6,673.5 points.
Will the local share market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to edge lower.
The Australian share market is expected to drop lower after a weak start to the week on Wall Street. According to the latest SPI futures, the ASX 200 index is expected to open the day 13 points or 0.2% lower this morning. In the United States the Dow Jones fell 0.5%, the S&P 500 dropped 0.3%, and the Nasdaq tumbled 0.3%.
Oil prices surge higher.
It could be another positive day of trade for energy shares such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) after oil prices continued to rise following the drone attacks on key oil refineries in Saudi Arabia. According to Bloomberg, the WTI crude oil price surged 12.4% higher to US$61.63 a barrel and the Brent crude oil price jumped 12.7% to US$67.86 a barrel over the last 24 hours.
Gold price rises.
Australian gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch today after tensions in the Middle East sent the gold price climbing higher. According to CNBC, the spot gold price pushed 0.45% higher to US$1,506 an ounce.
Shares trade ex-dividend.
A number of shares are due to go ex-dividend this morning and could trade lower this morning. These include poultry producer Inghams Group Ltd (ASX: ING), logistics services company Qube Holdings Ltd (ASX: QUB), and essential network services provider Service Stream Limited (ASX: SSM).
Qantas rated as a buy.
Analysts at Goldman Sachs believe the Qantas Airways Limited (ASX: QAN) share price is still in the buy zone despite the spike in oil prices. The broker thinks that Qantas is one of the best placed global carriers to benefit from the recent volatility in oil prices. As a result, it has retained its conviction buy rating with a $6.53 price target.
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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.