Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower.
It looks set to be a subdued day of trade on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.3% lower this morning. This is despite the positive night of trade on Wall Street on Tuesday. The Dow Jones rose 0.55%, the S&P 500 pushed 0.9% higher, and the Nasdaq index jumped 1.1% higher.
Oil prices rocket higher.
Energy shares including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could charge higher today after oil prices rocketed higher. According to Bloomberg, the WTI crude oil price is up 22.3% to US$24.94 a barrel and the Brent crude oil price is up 15.2% to US$31.33 a barrel. Optimism around ongoing production cuts and a recovery in demand due to easing lockdowns pushed prices higher.
Gold price edges higher.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Saracen Mineral Holdings Limited (ASX: SAR) will be on watch today after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,714.90 an ounce. Central bank stimulus gave the precious metal a lift.
National Storage to return.
The National Storage REIT (ASX: NSR) share price will be on watch this morning when it returns from its trading halt. On Tuesday the storage giant announced a fully underwritten $300 million institutional placement and a non-underwritten security purchase plan to raise up to a further $30 million. These funds will be used to strengthen its balance sheet, replenish investment capacity and provide additional funding flexibility. National Storage is raising the money at a 7.1% discount of $1.69.
Qantas rated as neutral.
Analysts at Goldman Sachs have retained their neutral rating on Qantas Airways Limited (ASX: QAN) following its market update. The broker notes that Qantas has improved its liquidity, but is still burning cash in an uncertain outlook. Goldman Sachs has a $3.03 price target on the airline operator’s shares.
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