On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a strong gain. The benchmark index rose 0.75% to 7,476.6 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to edge lower
The Australian share market is expected to edge lower on Tuesday despite a good 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% lower. In late trade in the United States, the Dow Jones is up 0.35%, the S&P 500 is up 0.3%, and the NASDAQ is 0.4% higher.
Buy the Liontown selloff
The Liontown Resources Ltd (ASX: LTR) share price was sold off on Monday following a disappointing update on the Kathleen Valley Lithium Project. The team at Bell Potter believes this could be a buying opportunity for investors with a high risk tolerance. This morning, the broker has retained its speculative buy rating with a reduced price target of $1.60 (from $2.25). This implies 70% upside from current levels. It notes that the "Kathleen Valley lithium project remains highly strategic in terms of its stage of development, long mine life and location."
Oil prices jump
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a great session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 3.2% to US$75.75 a barrel and the Brent crude oil price is up 2.5% to US$80.52 a barrel. A drone attack on Russian supplies was behind the jump.
Lynas remains a buy
Bell Potter also believes that investors should be snapping up Lynas Rare Earths Ltd (ASX: LYC) shares. In response to its quarterly update, the broker has retained its buy rating on the rare earths producer's shares with a trimmed price target of $7.60 (from $8.50). It said: "LYC remains a high-quality business, and a key supplier of separated rare earths to Western economies."
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued session after the gold price fell overnight. According to CNBC, the spot gold price is down 0.3% to US$2,023 an ounce. The gold price fell after US Fed rate cut optimism waned.
