On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.3% to 7,417.3 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise again
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 24 points or 0.3% higher this morning. The US market was closed on Monday for Martin Luther King Jr Day. In Europe the Dax rose 0.3% and the FTSE stormed 0.9% higher.
Rio Tinto quarterly update
The Rio Tinto Limited (ASX: RIO) share price will be on watch today when it releases its fourth quarter update. According to a note out of Goldman Sachs, it expects iron ore shipments of 88.9Mt and 133kt of mined copper for the quarter. The broker is also expecting the mining giant to provide FY 2022 guidance. It is forecasting Pilbara shipments of 330Mt (+10Mt YoY) and mined copper production of 550kt (+70kt YoY).
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 0.6% to US$84.30 a barrel and the Brent crude oil price has risen 0.5% to US$86.52 a barrel. Oil prices rose amid tightening supply and easing Omicron concerns.
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,818.90 an ounce. Traders appear undecided where gold is heading due to the Hawkish Fed.
South32 shares rated as a buy
The South32 Ltd (ASX: S32) share price remains a conviction buy with a $4.60 price target according to the team at Goldman Sachs. This follows the release of its pre-feasibility study on the Hermosa project. While the capital expenditure estimate was higher than it expected, Goldman believes the free cash flow and valuation story remains intact.
