On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.3% to 7,381.5 points.
Will the market be able build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to give back yesterdayâs gains despite a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 19 points or 0.25% lower. In the United States, a late rally saw the Dow Jones, S&P 500, and NASDAQ all close 0.3% higher. SPI futures may improve once these gains are fully reflected.
Oil prices drop
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$80.96 a barrel and the Brent crude oil price is down 1.7% to US$84.85 a barrel. Oil prices fell on interest rate hike concerns.
Elders named as a buy
Goldman Sachs remains positive on Elders Ltd (ASX: ELD) shares and has reiterated its buy rating. And while the broker has taken the agribusiness company off its conviction list, its price target of $13.20 still implies over 60% upside. It said: âIn our view the current valuation (10x P/E) has more than factored in any cyclical earnings impact and significantly undervalues the quality of the company.â
Gold price softens
It could be a softer day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price fell overnight. According to CNBC, the spot gold price is down 0.4% to US$2,007.4 an ounce. Traders have been reassessing their interest rate hike expectations.
Transurban Group rated as a sell
Goldman Sachs isn’t feeling as positive about Transurban Group (ASX: TCL). This morning it retained its sell rating and $13.50 price target on the toll road operator’s shares. Although it notes that the company is performing ahead of expectations in the second half, it believes that its “valuation still looks full.”
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
- Why AMA, New Hope, Regis Resources, and St Barbara shares are dropping
- Here are the 3 most heavily traded ASX 200 shares on Monday
- What can ASX 200 investors expect from the US Fed in 2023?
- If Iâd invested $1,000 in Liontown shares at the start of 2023, hereâs what Iâd have now
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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. 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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