On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with its best session in six months. The benchmark index rose 1.7% to 8,201.6 points.
Will the market be able to build on this during Tuesday's shortened session? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to edge lower on Tuesday despite a relatively positive start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% lower. In late trade on Wall Street, the Dow Jones is down 0.1%, but the S&P 500 is up 0.6% and the Nasdaq is up 0.9%.
Telstra named as a buy
The Telstra Group Ltd (ASX: TLS) share price could be good value according to analysts at Goldman Sachs. In response to news that the telco giant is selling its stake in Foxtel, the broker has reaffirmed its buy rating and $4.50 price target on its shares. This may not be the final asset sale according to the broker. It said: "We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn."
Oil prices soften
It looks set to be a subdued session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down slightly to US$69.42 a barrel and the Brent crude oil price is down 0.3% to US$72.73 a barrel. This was driven by a stronger US dollar.
Buy News Corp shares
Goldman Sachs also thinks that News Corporation Class (ASX: NWS) shares are a buy following the Foxtel sale. This morning, the broker has reaffirmed its buy rating and $52.00 price target on the media giant's shares. It said: "Two-thirds of our News Corp valuation resides in Digital Real Estate, a sector that we are very positive on given pricing power, large addressable markets and significant scope for digital disruption."
Gold price falls
ASX 200 gold miners including Bellevue Gold Ltd (ASX: BGL) and Regis Resources Limited (ASX: RRL) could have a poor session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.7% to US$2,627.5 an ounce. A stronger US dollar and higher bond yields weighed on the precious metal.
