On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a strong gain. The benchmark index rose 0.8% to 7,388.2 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to end its winning streak on Tuesday despite a positive night of trade in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% lower. In Europe, the DAX rose 0.3% and the FTSE pushed 0.2% higher. Wall Street was closed for a public holiday.
Oil prices run out of steam
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$78.87 a barrel and the Brent crude oil price is down 1.3% to US$84.20 a barrel. Traders appear to have been taking profit after some strong gains.
Qantas rated as a buy
Goldman Sachs has reiterated its conviction buy rating and $8.20 price target on Qantas Airways Limited (ASX: QAN) shares. This follows the release of industry data that indicates "2H23 domestic capacity at 102% of pre-COVID & Int'l at 80%; both ahead of market." Goldman added: "We believe the stock is not appropriately pricing QAN's improved earnings capacity."
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a soft day after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,917.3 an ounce. The gold price is trading near a nine-month high despite this softness.
Super Retail can keep climbing
The Super Retail Group Ltd (ASX: SUL) share price rocketed higher on Monday after the release of a strong update. This went down well with Goldman Sachs, which has reiterated its buy rating and with an improved price target of $14.20 on its shares. Goldman said: "SUL is our preferred pick in discretionary apparel/footwear space given outdoor/functional category resilience as well as the company's focus on driving consumer experience via loyalty (~70% of sales) and unique omni-channel experience."
