On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index finished the day 0.8% higher at 7,333.5 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 22 points or 0.3% higher. This follows a positive start to the week on Wall Street, which saw the Dow Jones rise 0.35%, the S&P 500 climb 0.35%, and the Nasdaq push 0.2% higher.
Oil prices soften
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.5% to US$74.17 a barrel and the Brent crude oil price has fallen 0.4% to US$75.26 a barrel. Oil prices slipped after economic worries weighed on sentiment.
Wesfarmers given buy rating
The Wesfarmers Ltd (ASX: WES) share price could be in the buy zone according to analysts at Goldman Sachs. In response to the company’s takeover approach of Australian Pharmaceutical Industries Ltd (ASX: API), Goldman has held firm with its buy rating and $59.70 price target. It said: “In the event of a successful completion, the business would offer WES exposure to another staple retailing business.”
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 weakened. According to CNBC, the spot gold price is down 0.2% to US$1,806.4 an ounce. Traders were selling the precious metal ahead of the release of US inflation data this week.
Iron ore price rises
It could be a positive day for iron ore miners such as BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG). This follows a solid night of trade for the steel making ingredient. According to Metal Bulletin, the spot iron ore price has risen 1.4% to US$217.85 a tonne.