On Monday the S&P/ASX 200 index gave back its strong start to end with just the smallest of gains. The benchmark index finished 1.5 points higher at 6,740.7 points.
Will the local share market be able to do better on Tuesday? Here are five things to watch:
ASX 200 expected to storm higher.
The benchmark S&P/ASX 200 index looks set to storm higher this morning. According to the latest SPI futures, the ASX 200 is expected to rise 23 points or 0.35% at the market open. This follows a positive start to the week on Wall Street, which saw the Dow Jones rise 0.5%, the S&P 500 push 0.6% higher, and the Nasdaq storm 1% higher. Strong earnings and trade war optimism helped drive markets higher.
All eyes will be on the Coles Group Ltd (ASX: COL) share price this morning when it releases its first quarter update. According to a note out of Goldman Sachs, it expects Coles to report group sales of $8,851 million. Its analysts are forecasting Food segment sales of $7,799 million and Liquor sales of $772.7 million. The Little Shop 2 promotion is not expected to have been as successful as the original.
Oil prices lower.
Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the slide today after oil prices started the week on a negative note. According to Bloomberg, the WTI crude oil price tumbled 1.5% to US$55.80 a barrel and the Brent crude oil price fell 0.7% to US$61.57 a barrel.
Gold price tumbles.
Australian gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could come under pressure on Tuesday after the spot gold price tumbled lower. According to CNBC, the spot gold price dropped 0.7% to US$1,494.6 an ounce. Improving risk appetite put pressure on the precious metal.
Annual general meetings.
Another group of shares will be holding their annual general meetings on Tuesday. This includes telco company Vocus Group Ltd (ASX: VOC) and iron ore producer Fortescue Metals Group Limited (ASX: FMG). The latter has only just released its quarterly update, so I doubt there will be any news out of it. But Vocus is likely to provide a first quarter update at its event.
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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.
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