5 things to watch on the ASX 200 on Tuesday 3 January 2023

5 things to watch on the ASX 200 on Tuesday

Here's what to expect when the market reopens…

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published January 3, 2023 6:47 am AEDT

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.

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