On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose a few points to 7,245.1 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 rise on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% higher this morning. This follows a solid start to the week on Wall Street, which in late trades sees the Dow Jones up 2.1%, the S&P 500 up 1.5%, and the Nasdaq trading 1.25% higher.
The Reserve Bank of Australia is meeting for the final time this year to discuss the cash rate. While the market isn’t expecting the central bank to increase rates just yet, it could provide an idea of when its first hike will occur. According to Westpac Banking Corp (ASX: WBC), its economics team expect the RBA to begin raising the cash rate in February 2023.
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a strong day after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 4.2% to US$69.00 a barrel and the Brent crude oil price has risen 4% to US$72.65 a barrel. Oil prices rose amid hopes that Omicron isn’t as severe as feared.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower. According to CNBC, the spot gold price is down 0.2% to US$1,780.40 an ounce. The precious metal fell after investors switched back into risk assets.
Magellan CEO resigns
The Magellan Financial Group Ltd (ASX: MFG) share price could come under pressure today after the struggling fund manager announced the exit of its CEO. After the market close, Magellan advised that Dr Brett Cairns has resigned for personal reasons and will be leaving the company. He will be replaced on an interim basis by its CFO Ms Kirsten Morton.