On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.45% to 8,347.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise again
The Australian share market is expected to rise again on Tuesday after US futures pushed higher. According to the latest SPI futures, the ASX 200 is poised to open the day 17 points or 0.2% higher. Wall Street was closed for the Martin Luther King Jnr Holiday, but US futures indicated a positive session tonight. Dow Jones futures gained 0.4%. S&P 500 futures added 0.4%. and Nasdaq-100 futures rose 0.6%.
BHP update
BHP Group Ltd (ASX: BHP) shares will be on watch on Tuesday when the mining giant releases its second quarter update. The consensus estimate is for flat copper production of 480kt and a 2% increase in iron ore Pilbara shipments (100% basis) to 72.9Mt. Goldman Sachs believes that shipments will be higher at 74Mt and be achieved with an average realised iron ore price of US$87 per tonne. The latter would be up 8.75% on the US$80 per tonne it recorded in the prior quarter.
Oil prices fall
It could be a subdued session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$76.98 a barrel and the Brent crude oil price is down 1.1% to US$79.90 a barrel. This seems to have been driven by profit taking after four weeks of gains.
South32 named as a buy
South32 Ltd (ASX: S32) shares are a buy according to analysts at Goldman Sachs. In response to the mining giant's quarterly update, the broker has retained its buy rating and $4.00 price target. It said: "S32 reported strong Dec Q production with aluminium, alumina, copper & manganese production all above GSe with FY25 guidance maintained for all assets except for Mozal aluminium in Mozambique."
Gold price falls
ASX 200 gold miners including Bellevue Gold Ltd (ASX: BGL) and Regis Resources Limited (ASX: RRL) could have a soft session on Tuesday after the gold price fell overnight. According to CNBC, the gold futures price is down 0.65 to US$2,730.9 an ounce. The gold price fell in response to Donald Trump's inauguration.
