5 things to watch on the ASX 200 on Tuesday

Here's what to expect when the market reopens…

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On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a small gain. The benchmark index rose 0.25% to 7,038.7 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought

Image Source: Getty Images

ASX 200 expected to rise

The Australian share market looks set to rise again on Tuesday following a decent night of trade in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 31 points or 0.5% higher. In Europe, the DAX rose 1.05% and the CAC climbed 1.9% amid upbeat economic data. Wall Street was closed for a public holiday.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2.7% to US$80.51 a barrel and the Brent crude oil price is up to US$85.91 a barrel. Oil prices rose on demand optimism.

Lithium miners on watch

It could be a better day for lithium miners such as Mineral Resources Ltd (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS) on Tuesday. On Wall Street on Friday, US-listed lithium miners such as SQM had a decent session. This has been followed up with a positive showing for European listed lithium shares overnight.

Gold price rises

Gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.2% to US$1,830.1 an ounce. Optimism that rates may not rise as much as feared has boosted the precious metal recently.

No RBA meeting

Borrowers can breathe a sigh of relief today. It may be the first Tuesday of the month, but the Reserve Bank will not be meeting to discuss the cash rate. The central bank doesn't hold monetary policy meetings in January, so rates will stay as they are until at least the start of February.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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