On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a much-needed spring in its step. The benchmark index jumped 1.1% to 7,649.2 points.
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 rise 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 15 points or 0.2% higher. In the United States, the Dow Jones was up 0.65%, the S&P 500 was up 0.9%, and the NASDAQ jumped 1.1%.
South32 shares named as a buy
South32 Ltd (ASX: S32) shares are good value according to analysts at Goldman Sachs. In response to the mining giant's quarterly update, the broker has reaffirmed its buy rating with a $3.70 price target. It said: "Attractive valuation: trading at ~0.9xNAV (A$3.83/sh), and an attractive NTM EV/EBITDA multiple of ~4x vs. the global sector average of 4.5x."
Oil prices ease
ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a subdued session on Tuesday after oil prices eased overnight. According to Bloomberg, the WTI crude oil price is down 0.15% to US$83.02 a barrel and the Brent crude oil price is down 0.1% to US$87.18 a barrel. This was driven by news that Iran won't be escalating its conflict with Israel.
Northern Star update
The Northern Star Resources Ltd (ASX: NST) share price will be on watch when the gold miner releases its quarterly update. Goldman Sachs has warned that rain could have impacted its production during the three months. It said: "With a number of gold miners (GOR, RRL, CMM) having already flagged production impacts from rainfall disruptions, tracking rainfall around select Australian gold assets highlights other assets are likely impacted to varying degrees, where we adjust our quarterly production for rain at Jundee and Carosue Dam/Kal (NST)." The broker expects gold production of 400,000 ounces and gold sales of 406,000 ounces. This compares to the consensus estimate of 420,000 ounces and 424,000 ounces, respectively.
Gold price sinks
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough session after the gold price sank on Monday. According to CNBC, the spot gold price is down 2.9% to US$2,342.90 an ounce. The aforementioned easing of tensions between Israel and Iran led to traders selling the safe haven asset.
