On Monday the S&P/ASX 200 index started the week on a positive note. The benchmark index rose 0.2% to 7,079.5 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.
The S&P/ASX 200 index looks set to continue its solid run on Tuesday. According to the latest SPI futures, the ASX 200 is poised to rise 5 points or 0.1% at the open. This is despite a reasonably poor start to the week in Europe. Wall Street was closed overnight for the Martin Luther King Jr holiday.
Oil prices edge higher.
Energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices climbed again. According to Bloomberg, the WTI crude oil price rose 0.2% to US$58.66 a barrel and the Brent crude oil price climbed 0.5% to US$65.19 a barrel. Oil prices rose after Libyan oilfields were shut down.
Gold price edges higher.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and St Barbara Ltd (ASX: SBM) will be on watch after a mildly positive night of trade for the gold price. According to CNBC, attacks in Yemen sent the spot gold price ever so slightly higher to US$1,560.60 an ounce.
The BHP Group Ltd (ASX: BHP) share price will be on watch on Tuesday when it releases its first half production update. Expectations are high for the mining giant. A note out of Goldman Sachs reveals that its analysts expect quarter on quarter growth for copper, iron ore, and met coal production.
NIB upgraded to neutral.
The NIB Holdings Limited (ASX: NHF) share price crashed lower on Monday after downgrading its earnings guidance for FY 2020. One broker that thinks its shares are now fair value is Goldman Sachs. This morning it upgraded its shares from a sell rating to neutral with a $5.66 price target. It notes that its shares are now trading at a 5% premium to the market, down from a 40% premium in mid-2019.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited. 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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