On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note. The benchmark index rose 0.6% to 6,675 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall.
The Australian share market looks set to give back some of its gains on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.25% lower this morning. This follows a reasonably mixed start to the week on Wall Street. In late trade the Dow Jones is down 0.65%, the S&P 500 is down 0.4%, and the Nasdaq is up 0.3%.
Link receives takeover offer.
The Link Administration Holdings Ltd (ASX: LNK) share price could be on the rise today after it revealed the receipt of an unsolicited takeover approach. SS&C Technology Holdings has tabled an offer of $5.65 per share. This represents a 13.9% premium to Link’s last close price. The Link board will now consider the SS&C proposal, including obtaining advice from its financial and legal advisers.
Oil prices soften.
It could be a tough day for energy producers including Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) on Tuesday after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.75% to US$45.91 a barrel and the Brent crude oil price has fallen 0.75% to US$48.88 a barrel. COVID-related forced lockdowns are weighing on demand for oil.
Gold price jumps.
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price jumped higher. According to CNBC, the spot gold price is up 1.3% to US$1,863.90 an ounce. This was driven by US stimulus optimism and a weaker US dollar.
Bank of Queensland AGM.
The Bank of Queensland Limited (ASX: BOQ) share price will be in focus today when it holds its annual general meeting. Shareholders will be keen to see how the regional bank is faring in the first half of FY 2021. In the last financial year the bank recorded $133 million in COVID-19 collective provisions. They will be optimistic that no further provisions will be necessary.