On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day to forget. The benchmark index fell 1.95% to 6,965.5 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market is expected to open the day higher on Tuesday despite a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.2% higher. On Wall Street the Dow Jones fell 0.6%, the S&P 500 dropped 0.7%, and the NASDAQ was down 1%.
Healius results
The Healius Ltd (ASX: HLS) share price will be on watch on Tuesday when the healthcare company releases its full year results. According to a note out of Citi, its analysts are expecting Healius to report a net profit after tax of $316 million. This is slightly ahead of consensus estimates of $308.9 million. However, it warned: "Near term weakness in the share price is possible through the FY22 result period as it becomes more obvious that PCR testing is permanently lower."
Oil prices charge higher
It could be a great day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) on Tuesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 4.15% to US$96.91 a barrel and the Brent crude oil price has risen 3.85% to US$104.88 a barrel. Traders were buying oil amid a conflict in Libya and speculation that OPEC will cut production if Iranian supply returns to the market.
Fortescue shares rated as a sell
The Fortescue Metals Group Limited (ASX: FMG) share price tumbled lower on Monday following the release of the mining giant's full year results. Unfortunately, the team at Goldman Sachs expects more of the same in the future. This morning the broker has reiterated its sell rating and $12.10 price target. This implies potential downside of 36% for investors over the next 12 months. Goldman highlights that Fortescue is "trading at a premium to BHP & RIO; c. 1.7x NAV vs. RIO & BHP at c. 0.8x & 1.1x NAV."
Gold price edges higher
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up slightly to US$1,750.30 an ounce. Gold recovered from a one-month low after US dollar softened.
