On Monday, the S&P/ASX 200 Index (ASX: XJO) continued its charge and reached a new record close. The benchmark index rose 0.75% to 8,017.6 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to fall on Tuesday despite a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.2% lower. On Wall Street, the Dow Jones rose 0.5%, the S&P 500 climbed 0.3%, and the Nasdaq pushed 0.4% higher. All three indices closed at record highs.
Rio Tinto update
Rio Tinto Ltd (ASX: RIO) shares will be on watch on Tuesday when the mining giant releases its second quarter update. Goldman Sachs expects the company to fall short of consensus estimates with its iron ore shipments. It said: "[W]e expect RIO's 2Q Pilbara iron ore shipments of 79Mt vs Consensus 82Mt as a result of train derailment early in the Q." However, it thinks Rio Tinto will maintain its full year guidance. It adds: "We think RIO can make up the lost shipments in 2H and we model 330Mt (vs. 332Mt in 2023), in the middle of the 323-338Mt guidance range."
Oil prices soften
It could be a subdued session for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.4% to US$81.88 a barrel and the Brent crude oil price is down 0.25% to US$84.81 a barrel. A stronger US dollar weighed on oil prices.
Nanosonics rated as a hold
The Nanosonics Ltd (ASX: NAN) share price is almost fully valued according to analysts at Bell Potter. In response to the infection prevention company's second half trading update, the broker has retained its hold rating with an improved price target of $3.45. This implies potential upside of 4.2% from current levels. It said: "Pleasing to see volumes rebounding after a difficult period in 1H24 where the market for capital sales in the US hospital system was very tight. We maintain our Hold rating."
Gold price rises
ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price rose overnight. According to CNBC, the spot gold price is up 0.25% to US$2,426.6 an ounce. Traders were buying gold after the US Federal Reserve indicated that rate cuts could be coming very soon.
