On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a very positive fashion. The benchmark index rose 1% to 6,964.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to rise again
The Australian share market is expected to rise again on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 41 points or 0.6% higher. In the United States, the Dow Jones rose 0.7%, the S&P 500 was up 1.1%, and the NASDAQ climbed 1.3%. Investors appear to be betting on an upcoming US economic data release showing that inflation is easing.
AGL outage update
The AGL Energy Limited (ASX: AGL) share price could come under pressure on Tuesday. After the market close on Monday, the energy company revealed that the Loy Yang A Unit 2 will be out of action for longer than expected. During testing in the final assembly of the generator rotor, a defect was identified. This is expected to delay the return of Loy Yang A Unit 2 until late October. However, management expects its strong performance during August and September to help offset the earnings impact.
Oil prices push higher
It could be a good day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$87.96 a barrel and the Brent crude oil price has risen 1.5% to US$94.19 a barrel. Supply uncertainty has been boosting prices.
Allkem tipped as a buy
The Allkem Ltd (ASX: AKE) share price may have been on fire recently but analysts at Bell Potter still see plenty of room for it to climb higher. According to a note this morning, the broker has retained its buy rating and lifted its price target on the lithium miner's shares to $20.04. This implies potential upside of 29% for investors over the next 12 months.
Gold price lifts
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.4% to US$1,736.0 an ounce. A softer US dollar and easing inflation bets gave the precious metal a boost.
