5 things to watch on the ASX 200 on Tuesday

Beach Energy Ltd (ASX:BPT) and Westpac Banking Corp (ASX:WBC) shares will be on watch on the ASX 200 on Tuesday…

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought

Image Source: Getty Images

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 (ASX: XJO) started the week with a small gain. The benchmark index rose a few points to 7,028.8 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 have a positive day on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% higher this morning. In the United States the Dow Jones rose 0.7% and the S&P 500 climbed 0.3%. The tech-focused Nasdaq index was out of form, though, and dropped 0.5%. This could weigh on local tech shares today.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a positive day after oil prices strengthened. According to Bloomberg, the WTI crude oil price is up 1.35% to US$64.44 a barrel and the Brent crude oil price has risen 1.1% to US$67.51 a barrel. Oil prices jumped after demand hopes outweighed concerns over rising COVID numbers in India.

Reserve Bank meeting

The Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. According to the latest cash rate futures, there is an 86% probability of a cut to zero being priced in by the market. However, economists at Westpac Banking Corp (ASX: WBC) don't believe the central bank will cut rates. They continue to forecast rates staying on hold at 0.1% for the foreseeable future.

Gold price storms higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.4% to US$1,792.70 an ounce. Weakness in the US dollar and bond yields gave the precious metal a boost. Elsewhere, the silver price jumped 4.3% overnight.

Westpac rated as a buy

The Westpac share price may have stormed higher on Monday but could keep on climbing according to Goldman Sachs. According to a note, the broker has retained its buy rating and lifted its price target to $29.03. It was pleased with its half year result and sees plenty more upside if the bank can deliver on its cost cutting plans.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Man with rocket wings which have flames coming out of them.
Broker Notes

These ASX 200 shares could rise 40%+

Big returns could be on offer from these shares according to analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Analysts say these ASX shares are top buys in June

Brokers are urging investors to buy these shares. Let's find out why.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a high note this Friday.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

These shares are ending the week in the red. But why?

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

Woman and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why Catapult, Champion Iron, Healthco, and Meeka Metals shares are pushing higher today

These shares are ending the week on a high. But why?

Read more »