On Monday, the S&P/ASX 200 Index (ASX: XJO) was on form and started the week on a positive note. The benchmark index rose 0.3% to 7,441 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 continue its ascent on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 21 points or 0.3% higher this morning. This follows a solid start to the week on Wall Street which in late trades sees the Dow Jones up 0.15%, the S&P 500 up 0.5%, and the Nasdaq trading 1% higher.
Telstra shares given buy rating
The team at Goldman Sachs have retained their buy rating and $4.40 price target on the Telstra Corporation Ltd (ASX: TLS) share price. This follows news that the telco giant is acquiring Digicel Pacific together with the Australian government. Goldman notes that: "1) the transaction has significant risk mitigants; 2) is within Telstra's core competency; and 3) is FCF/EPS accretive according to management."
Oil prices mixed
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.25% to US$83.54 a barrel, whereas the Brent crude oil price has risen 0.3% to US$85.77 a barrel.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could push higher today after the gold price stormed higher. According to CNBC, the spot gold price is up 0.7% to US$1,808.5 ounce. The safe haven asset rose after US bond yields softened.
Tech shares expected to rise
It looks set to be a good day for ASX tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) on Tuesday. This follows a strong night on the tech-focused Nasdaq index, which was trading 1% higher in late trade. In addition, the Square share price is up over 3% at the time of writing, which bodes well for Afterpay's shares. Square is acquiring Afterpay in an all-scrip deal.
