On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a very small gain. The benchmark index rose 5.1 points to 7,457.3 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to continue its rise on Tuesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% higher. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 1%, and the NASDAQ is up 1.7%.
Oil prices hit seven-week high
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.3% to US$81.87 a barrel and the Brent crude oil price is up 0.9% to US$88.41 a barrel. Oil prices hit a seven-week high thanks to a stronger Chinese outlook.
South32 rated as a buy
Morgans has reiterated its add rating on South32 Ltd (ASX: S32) shares with an improved price target of $5.60 following the miner's quarterly update. The broker said: "Despite the recent share price strength we still see further upside potential on offer as the upcycle in resources continues (while volatility is likely to also remain a feature). We maintain an ADD rating with a A$5.60 Target Price."
Gold price edges higher
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.1% to US$1,930.3 an ounce. The gold price rose despite the US dollar and bond yields ticking higher.
Lifestyle Communities is a strong buy
The Lifestyle Communities Ltd (ASX: LIC) share price may be nearing a 52-week high but Goldman Sachs believes it remains great value. This morning the broker has reiterated its conviction buy rating with an improved price target of $26.00. It said: "We believe inquiry rates and demand remain high for LIC's homes. The company is likely to report a strong sales pipeline supporting the view that settlements will rise significantly."
