5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index rose 1% to 6,964.5 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 rise again on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 41 points or 0.6% higher. In the United States, the Dow Jones rose 0.7%, the S&P 500 was up 1.1%, and the NASDAQ climbed 1.3%. Investors appear to be betting on an upcoming US economic data release showing that inflation is easing.

AGL outage update

The AGL Energy Limited (ASX: AGL) share price could come under pressure on Tuesday. After the market close on Monday, the energy company revealed that the Loy Yang A Unit 2 will be out of action for longer than expected. During testing in the final assembly of the generator rotor, a defect was identified. This is expected to delay the return of Loy Yang A Unit 2 until late October. However, management expects its strong performance during August and September to help offset the earnings impact.

Oil prices push higher

It could be a good day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$87.96 a barrel and the Brent crude oil price has risen 1.5% to US$94.19 a barrel. Supply uncertainty has been boosting prices.

Allkem tipped as a buy

The Allkem Ltd (ASX: AKE) share price may have been on fire recently but analysts at Bell Potter still see plenty of room for it to climb higher. According to a note this morning, the broker has retained its buy rating and lifted its price target on the lithium miner’s shares to $20.04. This implies potential upside of 29% for investors over the next 12 months.

Gold price lifts

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,736.0 an ounce. A softer US dollar and easing inflation bets gave the precious metal a boost.

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

• 2 ASX lithium shares leaping more than 9% on Monday
• Santos share price dips amid sell-off rumours
• The AGL share price has tumbled 16% in a month. What’s next?
• 5 things to watch on the ASX 200 on Monday
• Brokers name 3 ASX lithium shares to buy

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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 no position in any of the stocks mentioned. 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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