On Monday the S&P/ASX 200 Index (ASX: XJO) started the week a high. The benchmark index stormed 4.3% higher to 5,286.8 points.
Will the local share market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to surge higher.
It looks set to be another very positive day of trade for the ASX after Wall Street stormed higher after new coronavirus cases appeared to slow. According to the latest SPI futures, the index is expected to jump 114 points or 2.2% at the open. In late trade on Wall Street the United States the Dow Jones is up a sizeable 7.7%, the S&P 500 is up 7%, and the Nasdaq has climbed 7.3%.
Oil prices sink lower.
Uncertainty over Russia and Saudi Arabia's potential production cuts could weigh on energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) today. According to Bloomberg, the WTI crude oil sank 7.2% to US$26.30 a barrel and the Brent crude oil fell 2.8% to US$33.15 a barrel.
Reserve Bank cash rate meeting.
The Reserve Bank of Australia will meet to decide on the cash rate this afternoon. Recent emergency cuts have taken the cash rate down to a record low of 0.25%, but there is speculation the central bank could keep on going. According to the latest cash rate futures, the market is pricing in a 57% probability of a cut to zero today.
Gold price jumps.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price jumped higher. According to CNBC, the spot gold price stormed 3.5% higher to US$1,705.50 an ounce. Traders were buying gold on expectations of global stimulus measures to counter the economic damage caused by the outbreak of the coronavirus.
CSL working on COVID-19 treatment.
The CSL Limited (ASX: CSL) share price will be on watch today after it announced a partnership with rival Takeda Pharmaceutical to develop and deliver a hyperimmune immunoglobulin in the global fight against COVID-19. The treatment will use plasma donations from individuals who have fully recovered from the respiratory virus and whose blood contains antibodies that fight COVID-19.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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.
