5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.45% to 7,064.3 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market is expected to open the day higher on Tuesday following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% higher. On Wall Street the Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ was up 0.6%.

BHP results

The BHP Group Ltd (ASX: BHP) share price will be in focus on Tuesday when the mining giant releases its full year results. According to a note out of Morgans, its analysts are forecasting BHP to report EBITDA of US$40,776 million and a net profit of US$23,844 million. This is expected to underpin a fully franked US$2.84 per share dividend. Elsewhere, Goldman is forecasting EBITDA of US$44,000 million and a US$2.90 per share dividend.

Oil prices tumble

It could be a very red day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices tumbled on Monday night. According to Bloomberg, the WTI crude oil price is down 3.45% to US$88.91 a barrel and the Brent crude oil price has dropped 3.65% to US$94.58 a barrel. Surprisingly weak economic data out of China put pressure on prices.

Goldman’s bank ratings update

In response to their respective updates on Monday, the team at Goldman Sachs has downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a neutral rating with a $10.60 price target and retained their conviction buy rating on Westpac Banking Corp (ASX: WBC) shares with an improved price target of $26.55. Goldman notes that Westpac’s “asset quality was run-rating better” than its previous second half forecasts.

Gold price falls

It could be a difficult day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.15% to US$1,794.60 an ounce. A strong rebound by the US dollar and rate hike concerns weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why did the Woodside share price lag the ASX 200 on Monday?
• Here are the top 10 ASX 200 shares today
• Why is the AMP share price having such a lousy start to the week?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• What’s impacting the Santos share price today?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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