5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of declines. The benchmark index fell 2 points to 7,496.3 points.

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

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% lower. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is up 0.1%, and the NASDAQ is slightly higher.

Rio Tinto quarterly update

The Rio Tinto Ltd (ASX: RIO) share price will be on watch on Tuesday when the mining giant releases its quarterly update. The market is expecting the miner to report Pilbara iron ore shipments of 86.8Mt, which represents a 4% quarter on quarter increase. This is expected to be achieved with an average realised price of US$107 per tonne.

Oil prices soften

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$72.48 a barrel and the Brent crude oil price is down 0.2% to US$78.16 a barrel. This may have been driven by concerns over Chinese economic growth.

Pilbara Minerals remains a sell

Goldman Sachs continues to believe that Pilbara Minerals Ltd (ASX: PLS) shares are a sell despite its new offtake agreement with Ganfeng Lithium reducing unallocated volumes over FY24 to FY27 from ~45% to ~25%. Despite this, it notes that “PLS continues to trade at a premium to peers.” Goldman has a sell rating and $3.20 price target on its shares.

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$2,059.2 an ounce. The gold price rose on Fed rate cut optimism.

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

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• Why Chalice Mining, Nuix, Pilbara Minerals, and Sayona Mining shares are falling
• The pros and cons of buying Wesfarmers shares right now
• Pilbara Minerals share price tumbles despite Ganfeng Lithium deal
• Bullish about data centre growth? I’d try these 3 ASX 200 shares

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 Goldman Sachs Group. 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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