On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a mildly positive manner. The benchmark index finished the day 0.1% higher at 7,315 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to push higher again this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% higher. This follows a positive start to the week on European markets, which saw the FTSE rise 0.6%, the CAC rise 0.2%, and the DAX edge 0.1% higher. Wall Street was closed for the Independence Day holiday.
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$76.36 a barrel and the Brent crude oil price has risen 1.2% to US$77.10 a barrel. Oil prices jumped after OPEC’s crisis talks were abandoned following a clash between Saudi Arabia and the UAE.
Reserve Bank meeting
The Reserve Bank of Australia will meet today to decide on the cash rate. According to latest Westpac Banking Corp (ASX: WBC) Weekly economic report, the banking giant is expecting the central bank to make no changes. Though, an update on its Yield Curve Targeting (YCT) Program and the Bond Purchase Program are expected.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.5% to US$1,792 an ounce. The precious metal hit a two-week high on rising demand in India.
The IGO Ltd (ASX: IGO) share price could be good value according to analysts at Goldman Sachs. This morning the broker upgraded the clean energy focused miner’s shares to a buy rating with an improved price target of $9.30. It notes that the completion of the Tianqi Lithium joint venture acquisition creates a high-quality battery materials exposure.