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 day deep in the red. The benchmark index fell 1.4% to 6,898.5 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 50 points or 0.7% higher. In late trade in the United States, the Dow Jones is up 1.15%, the S&P 500 is up 0.8%, and the NASDAQ is up 0.3%.

Oil prices recover

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a better day after oil prices recovered a touch overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$67.61 a barrel and the Brent crude oil price is up 1.1% to US$73.79 a barrel. Traders appear to believe that oil prices were oversold.

Telstra rated as a buy

The Telstra Group Ltd (ASX: TLS) share price is great value according to analysts at Goldman Sachs. Following a review of the telecoms sector, the broker has reiterated its buy rating and $4.60 price target on its shares. It commented: “We continue to prefer Telstra (Buy) within the ANZ Telecoms sector, given its defensive low risk earnings (and dividend) growth.”

Gold price edges lower

It could be a softer day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,987.6 an ounce. Improving risk sentiment appears to have softened demand for the safe haven asset.

Incitec Pivot divestment

The Incitec Pivot Ltd (ASX: IPL) share price will be one to watch after the chemicals company announced the sale of its Waggaman operation in the United States to CF Industries for almost $1.9 billion. As part of the deal, the company has signed a 25-year ammonia supply agreement. The net cash proceeds from the sale are intended to be allocated in line with its capital allocation framework.

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
• Forget term deposits and buy these ASX 200 dividend shares: analysts
• Where I would go hunting for defensive ASX 200 shares with upside
• ASX 200 gold shares are starting the week with a bang. Here’s why

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 positions in and has recommended Telstra 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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