On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note. The benchmark index rose 0.6% to 7,223 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 again on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% higher. In the United States, the Dow Jones was up 1% and the S&P 500 rose 0.4%, but the NASDAQ fell 0.3%.
Oil prices jump
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have good session after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 6.3% to US$80.45 a barrel and the Brent crude oil price is up 6,3% to US$84.93 a barrel. Oil prices surged higher on Monday after OPEC announced a surprise production cut.
RBA meeting
It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 100% probability of rates remaining unchanged at 3.6%. Should the central bank do anything else, expect a reaction from the ASX 200 index.
Gold price pushes higher
It could be a decent day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.85% to US$2,003 an ounce. A softer dollar and concerns over the impact of OPEC's production cut on economic growth boosted the precious metal.
Sonic named as a buy
The Sonic Healthcare Limited (ASX: SHL) share price could be in the buy zone according to analysts at Morgans. This morning, the broker has retained its add rating with an improved price target of $37.80. It said: "We believe SHL has turned the corner on the pandemic and is in a strong position, with solid base business growth and effective cost outs, along with Covid-19 testing (at some level) and ample liquidity for capital management and M&A."
