On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.2% to 7,133.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to fall again
The Australian share market looks set to fall on Tuesday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.5% lower. In late trade in the United States, the Dow Jones is down 0.9%, the S&P 500 is down 1.25%, and the NASDAQ has sunk 1.65%.
Reliance named as a buy
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price could be in the buy zone according to analysts at Goldman Sachs. This morning, the broker reiterated its buy rating on the plumbing parts company's shares with a $4.05 price target. It said: "YTD RWC's share price has underperformed the US homebuilder Index and UK peers/channel partners. Adjusting for EPS revisions RWC has also de-rated more than both cohorts. We believe RWC is oversold."
Oil prices rise
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$75.67 a barrel and the Brent crude oil price has risen 1.5% to US$80.24 a barrel. Optimism over the Chinese economy outweighed concerns over a global recession.
Bega rated as a sell
The Bega Cheese Ltd (ASX: BGA) share price could be overvalued according to Goldman Sachs. This morning it has retained its sell rating with a $3.35 price target. It said: "We see BGA as strategically better placed than many of its Australian dairy competitors but the industry continues to face significant headwinds which we believe may not be fully reflected in the current share price."
Gold price falls
Gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,797.2 an ounce. Higher bond yields weighed on the precious metal.
