On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and finished the shortened week with a gain of 0.55% to 6,828.7 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 futures pointing higher
The Australian share market could have a strong start to the week. According to the most recent SPI futures, the ASX 200 is expected to open the week 23 points or 0.3% higher. However, it is worth noting that these contracts are based on pre-Easter trading. Since then, the US market has stormed to record highs, so the gains could be far stronger at the open. On Monday night the Dow Jones rose 1.1%, the S&P 500 climbed 1.45%, and the Nasdaq jumped 1.7%.
Oil prices sink
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure after oil prices sank lower. According to Bloomberg, the WTI crude oil price is down 4.3% to US$58.78 a barrel and the Brent crude oil price has fallen 4% to US$62.27 a barrel. Traders were selling oil after OPEC ramped up its production.
The Reserve Bank will be meeting this afternoon to make a decision on the cash rate. According to the latest cash rate futures, the market has priced in an 87% probability of a cut to zero. This means that while it remains unlikely, a cut is well and truly in play at today’s meeting. The current cash rate stands at 0.1%.
Gold price flat
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after a flat night of trade for the gold price. According to CNBC, the spot gold price is flat at US$1,728.70 an ounce. The precious metal was held back by improving investor sentiment.
Webjet given buy rating
The Webjet Limited (ASX: WEB) share price remains good value according to analysts at Goldman Sachs. This follows its recent capital raising via a convertible notes offering. The broker said: “We view this announcement as a move towards removing capital structure uncertainty. While the new convertible notes are likely to be dilutive to equity shareholders in the future (considering our WEB target price), they are currently out of the money with par value 20.3% above the current share price.” The broker has retained its buy rating and $7.00 price target.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.