On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.3% to 7,513.7 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
Image Source: Getty Images
ASX 200 expected to rise
The Australian share market looks set to rise following a strong night in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 47 points or 0.6% higher. On Wall Street, the Dow Jones rose 0.3%, the S&P 500 was up 0.8%, and the Nasdaq has stormed up 1.9% higher. The latter bodes well for the tech sector today.
Oil prices jump
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.5% to US$103.67 a barrel and the Brent crude oil price has risen 3.4% to US$107.93 a barrel. Prices lifted amid speculation that further sanctions could be placed on Russian oil and coal.
RBA meeting
It is the first Tuesday of the month, which means the Reserve Bank of Australia (RBA) will be getting together to decide on the cash rate this afternoon. While the central bank has hinted that rate hikes are coming, the general consensus is that the RBA will be keeping its powder dry at this meeting. The market continues to expect the first hike to occur in May.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.65% to US$1,936.30 an ounce. Potential new Russian sanctions and higher inflation expectations took the precious metal higher.
Iluka remains a buy
The Iluka Resources Limited (ASX: ILU) share price remains in the buy zone according to analysts at Goldman Sachs. In response to its final investment decision on phase three of the Eneabba Rare Earth Refinery, the broker has retained its conviction buy rating with an improved price target of $14.00.
