On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a disappointing fashion. The benchmark index fell 0.8% to 7,733.7 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market is expected to rebound on Tuesday despite a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 42 points or 0.55% higher. On Wall Street, the Dow Jones was up 0.7%, but the S&P 500 fell 0.3% and the Nasdaq dropped 1.1%.
Paladin Energy acquisition
The Paladin Energy Ltd (ASX: PDN) share price will be on watch today after the uranium miner announced a major acquisition. Paladin Energy has signed an agreement to acquire Fission Uranium Corp. (TSX: FCU) through an all-scrip deal at 0.1076 shares per Fission share. This values the Canadian uranium miner at C$1.140 billion (A$1.25 billion). The transaction is targeted to close in the September 2024 quarter.
Oil prices storm higher
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.2% to US$81.68 a barrel and the Brent crude oil price is up 1% to US$86.06 a barrel. Oil prices have been rising thanks to optimism that summer fuel demand will draw down inventories and tighten the market.
Telstra named as a buy
Telstra Group Ltd (ASX: TLS) shares remain good value according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating with a trimmed price target of $4.20. The broker believes the telco giant's shares are undervalued based on the discount they are trading at to other large cap peers. It said: "We view some discount as appropriate but in our view this looks excessive, particularly given the forecast mid to high single digit EPS growth over the next few years, strong market position and the potential for some or all of InfraCo to be sold in the medium term."
Gold price rises
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.6% to US$2,345.9 an ounce. A softer US dollar boosted the precious metal.
