On Monday the S&P/ASX 200 index started the week on a positive note. The benchmark index finished the day a 0.3% higher at 6,686.9 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 again.
It looks set to be another positive day of trade for the S&P/ASX 200 index after a solid night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.6% higher this morning. On Wall Street the Dow Jones climbed 0.4%, the S&P 500 jumped 0.4%, and the Nasdaq raced 0.6% higher.
The Westpac Banking Corp (ASX: WBC) share price will be on watch this morning when it returns from its trading halt. The banking giant requested the trading halt on Monday so it could launch its $2.5 billion capital raising. These funds will be used to strengthen its balance sheet and improve its CET1 ratio.
Reserve Bank meeting.
All eyes will be on the Reserve Bank of Australia this afternoon when the central bank makes a decision on the cash rate. According to the latest cash rate futures contracts, there is just a 7% probability of a rate cut at this meeting.
Oil prices rise.
It looks set to be another positive day of trade for energy shares such as Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price rose 0.35% higher to US$56.54 a barrel and the Brent crude oil price pushed 0.7% higher to US$62.12 a barrel.
Gold price edges lower.
Australia’s leading gold miners including Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could slide lower today after the gold price slipped again. According to CNBC, the spot gold price fell 0.1% to US$1,510.10 an ounce following an improvement in risk appetite.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.