On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of declines. The benchmark index fell 2 points to 7,496.3 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to fall on Tuesday following a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% lower. Wall Street was closed for a public holiday but the DAX was down 0.5% and the FTSE was down 0.4%.
Rio Tinto quarterly update
The Rio Tinto Ltd (ASX: RIO) share price will be on watch on Tuesday when the mining giant releases its quarterly update. The market is expecting the miner to report Pilbara iron ore shipments of 86.8Mt, which represents a 4% quarter on quarter increase. This is expected to be achieved with an average realised price of US$107 per tonne.
Oil prices soften
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$72.48 a barrel and the Brent crude oil price is down 0.2% to US$78.16 a barrel. This may have been driven by concerns over Chinese economic growth.
Pilbara Minerals remains a sell
Goldman Sachs continues to believe that Pilbara Minerals Ltd (ASX: PLS) shares are a sell despite its new offtake agreement with Ganfeng Lithium reducing unallocated volumes over FY24 to FY27 from ~45% to ~25%. Despite this, it notes that "PLS continues to trade at a premium to peers." Goldman has a sell rating and $3.20 price target on its shares.
Gold price falls
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$2,059.2 an ounce. The gold price rose on Fed rate cut optimism.
