On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in sensational form. The benchmark index jumped 2.15% to 5,615.6 points.
Will the market be able build on this on Tuesday? Here are five things to watch:
ASX 200 expected to push higher again.
It looks set to be another positive day of trade for the ASX 200. According to the latest SPI futures, the index is expected to open the day 47 points or 0.85% higher this morning. This is despite Wall Street and the UK being closed for public holidays. In Europe the DAX was on form and jumped 2.9% higher on reopening optimism.
Oil prices climb higher.
It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO). According to Bloomberg, the WTI crude oil price has pushed 1.4% higher to US$33.72 a barrel and the Brent crude oil price is up 1.3% to US$35.58 a barrel. Traders appear optimistic that demand is picking up for oil as economies reopen.
Gold price drops lower.
Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after spot gold price dropped lower. According to CNBC, the spot gold price fell 0.5% to US$1,727.40 an ounce. This was driven by stimulus in Japan leading to an increase in risk appetite from investors.
Iron ore price softens.
Fortescue Metals Group Limited (ASX: FMG) and other iron ore producers will be on watch today after Chinese iron ore prices softened overnight. The price of the steel-making ingredient fell 1% in China, possibly due to profit taking after some strong gains in recent weeks. The London Metal Exchange was closed.
Qantas shares on watch.
The Qantas Airways Limited (ASX: QAN) share price will be one to watch today after a number of industry developments. The first is that airline giant Lufthansa has been bailed out by the German government. According to CNBC, the two parties have agreed on a US$9.8 billion rescue package. Elsewhere, Air New Zealand Limited (ASX: AIZ) provided a liquidity update this morning which revealed that it has burned through NZ$260 million of cash during the pandemic.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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