On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index rose 1.5% to 6,779.4 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 again
The Australian share market looks set to rise strongly today after a great start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.6% higher. In late trade in the United States, the Dow Jones is up 1.5%, the S&P 500 is up 1.4%, and the NASDAQ is 1.1% higher.
Oil prices edge lower
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch today after a soft night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.3% to US$84.76 a barrel and the Brent crude oil price has edged 0.1% lower to US$93.47 a barrel. Weak Chinese demand data weighed on prices.
Pilbara Minerals update
The Pilbara Minerals Ltd (ASX: PLS) share price will be one to watch today when the lithium giant releases its quarterly update. Sky high lithium prices are expected to have led to another very strong quarter for the company. Though, the market will be looking to see if its margins are being impacted by cost inflation.
Treasury Wine upgraded to buy
The Treasury Wine Estates Ltd (ASX: TWE) share price could be great value according to analysts at Goldman Sachs. This morning the broker has upgraded the wine giant's shares to a buy rating with a $14.70 price target. Goldman notes that its analysts "now expect the company to deliver ~16% NPAT 2022-25e CAGR."
Gold price flat
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price traded flat overnight. According to CNBC, the spot gold price is fetching US$1,656.2 an ounce. A strong US dollar and rising treasury yields have lessened its appeal.
