5 things to watch on the ASX 200 on Tuesday

Oil Search Limited (ASX:OSH), Qantas Airways Limited (ASX:QAN), and St Barbara Ltd (ASX:SBM) shares will be on watch on the ASX 200 index on Tuesday…

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Monday the S&P/ASX 200 index started the week with the smallest of gains. The benchmark index rose half a point to 6,673.5 points.

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

ASX 200 expected to edge lower.  

The Australian share market is expected to drop lower after a weak start to the week on Wall Street. According to the latest SPI futures, the ASX 200 index is expected to open the day 13 points or 0.2% lower this morning. In the United States the Dow Jones fell 0.5%, the S&P 500 dropped 0.3%, and the Nasdaq tumbled 0.3%.

Oil prices surge higher.

It could be another positive day of trade for energy shares such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) after oil prices continued to rise following the drone attacks on key oil refineries in Saudi Arabia. According to Bloomberg, the WTI crude oil price surged 12.4% higher to US$61.63 a barrel and the Brent crude oil price jumped 12.7% to US$67.86 a barrel over the last 24 hours.

Gold price rises.

Australian gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch today after tensions in the Middle East sent the gold price climbing higher. According to CNBC, the spot gold price pushed 0.45% higher to US$1,506 an ounce.

Shares trade ex-dividend.

A number of shares are due to go ex-dividend this morning and could trade lower this morning. These include poultry producer Inghams Group Ltd (ASX: ING), logistics services company Qube Holdings Ltd (ASX: QUB), and essential network services provider Service Stream Limited (ASX: SSM).

Qantas rated as a buy.

Analysts at Goldman Sachs believe the Qantas Airways Limited (ASX: QAN) share price is still in the buy zone despite the spike in oil prices. The broker thinks that Qantas is one of the best placed global carriers to benefit from the recent volatility in oil prices. As a result, it has retained its conviction buy rating with a $6.53 price target.

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.

More on Share Market News

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »