On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a strong gain. The benchmark index rose 0.8% to 7,276.5 points.
Will the market be able build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to edge lower
The Australian share market looks set to give back a small portion of yesterday's gains following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 6 points or 0.1% lower. In the United States, the Dow Jones was down 0.2%, the S&P 500 was up slightly by 0.05%, and the NASDAQ rose 0.2%.
Oil prices rise again
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have strong session after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 2.1% to US$72.83 a barrel and the Brent crude oil price is up 1.8% to US$76.54 a barrel. Oil prices rose as recession fears began to ease.
Westpac still a buy for Goldman
The Westpac Banking Corp (ASX: WBC) share price pushed higher on Monday after investors responded positively to the bank's half-year results release. Goldman Sachs believes the gains can continue and has reiterated its buy rating with a new $24.67 price target. The broker has also kept Australia's oldest bank on its conviction list.
Gold price edges higher
Gold miners 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 0.15% to US$2,028 an ounce. Traders appear to be betting that the upcoming US inflation reading will bring good news for gold.
Lynas rated neutral
Goldman Sachs isn't as positive on Lynas Rare Earths Ltd (ASX: LYC) shares. It has responded to news that its Malaysian operations will continue to operate for another year by retaining its neutral rating with an improved price target of $6.90. The broker prefers Iluka Resources Limited (ASX: ILU) for rare earths exposure.
