On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose a few points to 7,028.8 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to have a positive day on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% higher this morning. In the United States the Dow Jones rose 0.7% and the S&P 500 climbed 0.3%. The tech-focused Nasdaq index was out of form, though, and dropped 0.5%. This could weigh on local tech shares today.
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a positive day after oil prices strengthened. According to Bloomberg, the WTI crude oil price is up 1.35% to US$64.44 a barrel and the Brent crude oil price has risen 1.1% to US$67.51 a barrel. Oil prices jumped after demand hopes outweighed concerns over rising COVID numbers in India.
Reserve Bank meeting
The Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. According to the latest cash rate futures, there is an 86% probability of a cut to zero being priced in by the market. However, economists at Westpac Banking Corp (ASX: WBC) don't believe the central bank will cut rates. They continue to forecast rates staying on hold at 0.1% for the foreseeable future.
Gold price storms higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.4% to US$1,792.70 an ounce. Weakness in the US dollar and bond yields gave the precious metal a boost. Elsewhere, the silver price jumped 4.3% overnight.
Westpac rated as a buy
The Westpac share price may have stormed higher on Monday but could keep on climbing according to Goldman Sachs. According to a note, the broker has retained its buy rating and lifted its price target to $29.03. It was pleased with its half year result and sees plenty more upside if the bank can deliver on its cost cutting plans.
