On Monday the S&P/ASX 200 index started the week with the smallest of gains. The benchmark index rose a few points to 6,652.5 points.
Will the local share market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to rise.
It looks set to be a positive day of trade for the S&P/ASX 200 index following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to rise 0.3% or 18 points at the open. On Wall Street the Dow Jones rose 0.25%, the S&P 500 climbed 0.6%, and the Nasdaq pushed 0.8% higher. This was driven by trade war optimism.
Oil prices tumble.
Beach Energy Ltd (ASX: BPT), Woodside Petroleum Limited (ASX: WPL), and the rest of Australia’s energy producers could come under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price fell 0.6% to US$52.81 a barrel and the Brent crude oil price dropped 0.65% to US$59.04 a barrel.
Gold price drops.
It looks set to be a difficult day of trade for gold miners such as Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) after the spot gold price dropped lower. According to CNBC, the spot gold price fell 0.5% to US$1,486.4 an ounce amid improving risk sentiment.
The Costa Group Holdings Ltd (ASX: CGC) share price will be one to watch today. The horticulture company requested a trading halt on Monday whilst it prepares a market update. Unfortunately, seldom do companies halt their shares ahead of good news. So, it looks as though it is yet another guidance downgrade.
The WiseTech Global Ltd (ASX: WTC) share price crashed 12% lower on Monday before being placed in a trading halt following the release of a second short seller report. There’s a good chance that the logistics solutions company will respond to this latest attack today and return to trade.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of WiseTech Global. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. 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.