On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index finished the day roughly flat at 5,926.1 points.
Will the market be able to do better than this on Tuesday? Here are five things to watch:
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ASX 200 expected to surge higher.
It looks set to be a much more positive day for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 84 points or 1.4% higher. This follows a positive start to the week on Wall Street, which saw the Dow Jones rise 0.9%, the S&P 500 climb 0.7%, and the Nasdaq index storm 1.5% higher. Strong gains by Apple and Microsoft helped drive U.S. markets higher.
Reserve Bank meeting.
This afternoon the Reserve Bank of Australia will meet to discuss the cash rate. At present, the market is pricing in a 57% probability of a rate cut to zero at the meeting. Although this means a cut is reasonably unlikely, it is in play. Especially given the recent strengthening of the Australian dollar versus the U.S. dollar.
Oil prices push higher.
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.2% to US$40.77 barrel and the Brent crude oil price has pushed 0.8% higher to US$43.88 a barrel. Positive economic data from Europe, Asia, and the United States helped support oil prices.
Gold price hits record high.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher again. According to CNBC, the spot gold price is up 0.35% to US$1,992.8 an ounce. The precious metal hit a record high during overnight trade.
BWP results.
Bunnings Warehouse landlord BWP Trust (ASX: BWP) is scheduled to release its full year results this morning. In June the company revealed that it has been collecting rent largely as normal during the pandemic. In light of this, it expects to declare a second half distribution of 9.27 cents per unit. This will bring its full year distribution to 18.29 cents per unit, up 1% on the prior financial year. According to CommSec, the market expects a full year profit of $117 million.
