5 things to watch on the ASX 200 on Tuesday

Another positive session is expected for Aussie investors on Tuesday.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) returned to form and charged higher. The benchmark index rose 0.8% to 7,637.4 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 10 points or 0.15% higher. In the United States, the Dow Jones was up 0.4%, the S&P 500 was up 0.3%, and the NASDAQ rose 0.35%.

IGO update

The IGO Ltd (ASX: IGO) share price will be one to watch on Tuesday when the battery materials miner releases its quarterly update. As one of the lowest-cost lithium producers in the world, the market will no doubt be keen to see how the company is performing in the current environment. Goldman Sachs is expecting spodumene production of 226,000 tonnes, down 37% on the previous quarter. This is expected to limit sales to just 170,000 tonnes. Whereas the consensus estimate is for production of 282,000 tonnes and sales of 245,000 tonnes.

Oil prices tumble

ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a tough session on Tuesday after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.3% to US$82.76 a barrel and the Brent crude oil price is down 1.15% to US$88.48 a barrel. Easing tensions in the Middle East put pressure on prices.

Champion Iron shares named as a buy

Goldman Sachs thinks that Champion Iron Ltd (ASX: CIA) shares are cheap at current levels. In response to the iron ore miner's quarterly update, the broker has reiterated its buy rating and $9.30 price target on its shares. The broker highlights that "the stock is trading at 0.8x NAV (A$8.8/sh) and ~4.4x EBITDA (NTM)". It also points out that "CIA has now ramped-up Bloom Lake Phase II to 15Mtpa nameplate, and we expect this to support +50% EBITDA growth and doubling of Operating Cash Flow (OCF) in FY25."

Gold price edges higher

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a relatively positive session after the gold price edged higher on Monday. According to CNBC, the spot gold price is up slightly to US$2,348.1 an ounce. A softer US dollar boosted the precious metal.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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