On Monday the S&P/ASX 200 index started the week on a subdued note and fell 4 points to 6,451.9 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX futures pointing higher.
The Australian share market looks set to open the day marginally higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to reverse yesterday's decline and open the day 4 points higher this morning. Wall Street was closed for the Memorial Day holiday, but European markets were positive. The DAX rose 0.5% and the FTSE climbed 0.65%.
Oil prices surge higher.
Australian energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be on the rise today after oil prices surged higher overnight. According to Bloomberg, the WTI crude oil price pushed 1% higher to US$59.24 a barrel and the Brent crude oil price raced 2% higher to US$70.11 a barrel after supply risks offset trade war concerns.
Gold price edges higher.
Australian gold miners including Saracen Mineral Holdings Limited (ASX: SAR) and St Barbara Ltd (ASX: SBM) could have a mildly positive day on Tuesday after the gold price edged higher. According to CNBC, the spot gold price climbed 0.1% to US$1,284.4 an ounce.
Rio Tinto upgraded to a buy.
According to a note out of Goldman Sachs, its analysts have upgraded Rio Tinto Limited (ASX: RIO) shares to a buy rating with a $108.40 price target after upgrading their iron ore forecasts. The broker's commodities team made the move after upgrading Chinese steel demand and adjusting for even lower Brazilian supply.
Iron ore hits a five-year high.
Fellow iron ore producers BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) could also be on the rise this morning after iron prices surged higher once again. According to CommSec, the spot iron ore price rose by US$4.35 or 4.2% to a five-year high of US$108 a tonne.
