On Monday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week with a decline. The benchmark index dropped 0.3% to 6,974 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 futures pointing higher
The Australian share market looks set to edge higher this morning despite a subdued night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 0.1% or 6 points higher. On Monday night the Dow Jones fell 0.15%, the S&P 500 was flat, and the Nasdaq was down 0.35%. Investors appear nervous ahead of the release of key US inflation data.
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices climbed overnight. According to Bloomberg, the WTI crude oil price is up 0.65% to US$59.71 a barrel and the Brent crude oil price has risen 0.55% to US$63.30 a barrel. Middle East tension supported oil prices.
Cleanaway acquisition hopes hit
The Cleanaway Waste Management Ltd (ASX: CWY) share price could come under pressure today after its plan to acquire Suez Australia’s business for $2.5 billion hit a roadblock. This follows news that waste management giants Veolia and Suez have agreed a mega merger. According to the Financial Times, the combined entity will have revenues of 37 billion euros.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 0.7% to US$1,732.30 an ounce. The precious metal came under pressure after bond yields firmed up.
Webjet given buy rating
The Webjet Limited (ASX: WEB) share price is still in the buy zone according to analysts at Goldman Sachs. In response to the completion of its convertible notes offering, the broker has retained its buy rating and $7.00 price target. This price target implies potential upside of almost 32% over the next 12 months for its shares.
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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.
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