On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a tiny gain. The benchmark index rose 4.1 points to 7,199.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market is expected to edge higher again on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 7 points or 0.1% higher. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is up 0.3%, and the NASDAQ is 0.15% higher.
Incitec Pivot given buy rating
Incitec Pivot Ltd (ASX: IPL) shares are good value according to analysts at Goldman Sachs. This morning, the broker has reinstated coverage on the agricultural chemicals company's shares with a buy rating and $3.25 price target. The broker expects some major capital returns in the near future. It said: "We assume a capital return on A$500m in 1H24e and a A$180m buy-back in 2H24 (remaining A$720 buy-back in FY25e)."
Oil prices rise
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a mildly positive session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.1% to US$71.32 a barrel and the Brent crude oil price is up 0.3% to US$76.05 a barrel. Oil prices rose despite traders being wary about supply cuts and demand.
Gold price slips under US$2,000
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor session after the gold price pulled back again overnight. According to CNBC, the spot gold price is down 0.85% to US$1,997 an ounce. Traders have been selling gold after reducing their interest rate cut assumptions.
Buy Regis Resources shares
Bell Potter thinks investors should be buying Regis Resources shares for their gold exposure. This morning, the broker has retained its buy rating and lifted its price target on the gold miner's shares to $2.37. This implies a potential upside of 25% from current levels. It said: "RRL is one of the largest ASX gold producers with an attractive all-Australian asset portfolio and organic growth options which are unique at this scale."
