On Monday the S&P/ASX 200 Index (ASX: XJO) was back on form and charged notably higher. The benchmark index jumped 1.75% to 6,789.6 points.
Will the 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 for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 53 points or 0.8% higher this morning. This follows a fantastic start to the week on Wall Street, which in late trade sees the Dow Jones up 2.15%, the S&P 500 up 2.4%, and the Nasdaq index trading 2.6% higher.
Reserve Bank meeting
The Reserve Bank of Australia is meeting this afternoon to discuss the cash rate. According to the latest cash rate futures, the market is current pricing in a 69% probability of a rate cut to zero. However, according to the most recent Westpac Banking Corp (ASX: WBC) weekly economic report, its team doesn’t expect the central bank to make a move despite the recent developments in the bond market.
Oil prices weaken further
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices weakened. According to Bloomberg, the WTI crude oil price is down 1.9% to US$60.32 a barrel and the Brent crude oil price has fallen 1.45% to US$63.50 a barrel.
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down a further 0.3% to US$1,723.70 an ounce. This appears to have been driven by increasing risk appetite.
Mesoblast shares to return
The Mesoblast limited (ASX: MSB) share price is due to return from its trading halt this morning. The biotech company requested the halt last Friday so that it could raise funds to keep its operations going. No details have been released, other than that the company “has commenced a proposed equity-based private placement to a targeted industry investor to fund operations.”
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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. 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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