On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a subdued note. The benchmark index finished the day slightly lower at 7,394.3 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market looks set to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.30% higher at the open. This follows a positive night of trade on Wall Street, which saw the Dow Jones rise 0.2%, the S&P 500 climb 0.25%, and the Nasdaq edge slightly higher. The S&P 500 hit a new record high overnight.
Oil prices edge higher
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a positive day after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.1% to US$72.13 a barrel and the Brent crude oil price has risen 0.85% to US$74.72 a barrel. Traders were buying oil on the belief that the market is undersupplied.
Oil Search Q2 update
The Oil Search Ltd (ASX: OSH) share price will be one to watch when it releases its second quarter update this morning. Shareholders will be hoping that the energy producer’s performance has improved since the first quarter when it recorded a 2.7% quarter on quarter decline in net production to 6.9mmboe. Investors may also want to look out for any comments on the Santos Ltd (ASX: STO) merger proposal.
Gold price softens
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.25% to US$1,797.6 an ounce. The price of the precious metal fell despite weakness in the US dollar. Traders appear nervous ahead of another US Federal Reserve meeting.
Westpac asset sale update
The Westpac Banking Corp (ASX: WBC) share price will be on watch today. This follows the after market release of an announcement on Monday relating to its sale of its Pacific businesses. That update reveals that Papua New Guinea’s Independent Consumer and Competition Commission intends to deny authorisation to Kina Bank for the proposed acquisition of Westpac’s stake in Westpac Bank PNG.