On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in style. The benchmark index rose 0.85% to 7,989.6 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 following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 61 points or 0.8% lower. On Wall Street, the Dow Jones was down 0.1%, but the S&P 500 rose 0.1%, and the Nasdaq edged 0.1% higher.
Fortescue block sale
Fortescue Ltd (ASX: FMG) shares will be on watch on Tuesday amid reports that a large institutional investor is selling down its holding. According to the AFR, after the market close on Monday, JPMorgan's equity capital markets team was in the market looking for buyers of almost $2 billion of discounted Fortescue stock. This represents approximately 3% of its overall shares outstanding.
Oil prices fall again
It could be another subdued session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices softened again overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$75.84 a barrel and the Brent crude oil price is down 1.65% to US$79.79 a barrel. Demand concerns appear to be behind this weakness.
NIB rated as a buy
The NIB Holdings Limited (ASX: NHF) share price remains in the buy zone according to Goldman Sachs. This morning, in response to the exit of its long-serving CEO, the broker retained its buy rating and $8.10 price target on the private health insurer's shares. It commented: "Prima facie, we believe investors could view the departure of Mr. Fitzgibbon as a loss given he was well regarded and his successful track record. That said, strategically, as Mr. Close oversaw much of the operations, we would not expect the appointment to result in a material change to NHF's core ARHI business."
Gold price softens
It looks like ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have an underwhelming session on Tuesday after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$2,380.2 an ounce. Traders appear nervous ahead of the US Federal Reserve meeting.
