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 strong gain. The benchmark index rose 0.8% to 7,388.2 points.

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

ASX 200 expected to fall

The Australian share market looks set to end its winning streak on Tuesday despite a positive night of trade in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% lower. In Europe, the DAX rose 0.3% and the FTSE pushed 0.2% higher. Wall Street was closed for a public holiday.

Oil prices run out of steam

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$78.87 a barrel and the Brent crude oil price is down 1.3% to US$84.20 a barrel. Traders appear to have been taking profit after some strong gains.

Qantas rated as a buy

Goldman Sachs has reiterated its conviction buy rating and $8.20 price target on Qantas Airways Limited (ASX: QAN) shares. This follows the release of industry data that indicates “2H23 domestic capacity at 102% of pre-COVID & Int’l at 80%; both ahead of market.” Goldman added: “We believe the stock is not appropriately pricing QAN’s improved earnings capacity.”

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a soft day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,917.3 an ounce. The gold price is trading near a nine-month high despite this softness.

Super Retail can keep climbing

The Super Retail Group Ltd (ASX: SUL) share price rocketed higher on Monday after the release of a strong update. This went down well with Goldman Sachs, which has reiterated its buy rating and with an improved price target of $14.20 on its shares. Goldman said: “SUL is our preferred pick in discretionary apparel/footwear space given outdoor/functional category resilience as well as the company’s focus on driving consumer experience via loyalty (~70% of sales) and unique omni-channel experience.”

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

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• BHP share price hits milestone $50 mark on Monday
• Shareholders rejoice! Qantas share price hits post-market-crash high
• This ASX 200 retail share is booming 10% on an ‘outstanding first-half result’

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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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