On Monday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week in the red. The benchmark index fell 0.2% to 6,780.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to push higher on Tuesday despite a mixed start to the week on international markets. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.3% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.45%, the S&P 500 is down 0.2%, and the Nasdaq index has sunk 1.4%.
Oil prices jump
It looks set to be a good day for energy producers Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) after oil prices surged higher. According to Bloomberg, the WTI crude oil price is up 3.6% to US$61.35 a barrel and the Brent crude oil price is up 3.2% to US$64.93 a barrel. The catalyst for this was speculation that it could take US energy producers longer to return from the winter freeze.
The SEEK Limited (ASX: SEK) share price will be in focus today when it releases its half year update. Earlier this month analysts at Goldman Sachs tipped the job listings company to upgrade its FY 2021 guidance. The market is currently expecting SEEK to deliver operating earnings of $404 million in FY 2021, but it feels this could be lifted to $420 million. This is due to the continual improvement in macro trends relative to the October levels when its guidance was given.
Gold price storms higher
It could be a positive day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price stormed higher. According to CNBC, the spot gold price rose 1.7% to US$1,807.80 an ounce overnight after investors chose for the precious metal as a hedge against rising inflation.
Crown hit with Royal Commission
The Crown Resorts Ltd (ASX: CWN) share price could come under pressure today after being hit with a Royal Commission. The inquiry will look to establish the suitability of Crown to hold its Victorian casino licence. Helen Coonan, Crown’s Executive Chairman, said: “Crown welcomes the announcement from the Victorian Government as it provides an opportunity to detail the reforms and changes to our business to deliver the highest standards of governance and compliance, and an organisational culture that meets community expectations.”
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia has recommended Crown Resorts Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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