On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.35% to 8,482.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
Image Source: Getty Images
ASX 200 expected to rebound
The Australian share market is expected to return to form on Tuesday following a strong start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 34 points or 0.4% higher. In late trade on Wall Street, the Dow Jones is up 0.4%, the S&P 500 is up 0.8%, and the Nasdaq is 1.2% higher.
JB Hi-Fi shares downgraded
Bell Potter thinks that JB Hi-Fi Ltd (ASX: JBH) shares are fully valued right now. In response to its half year results release, the broker has downgraded the retail giant's shares to a hold rating with a slightly improved price target of $99.00. It said: "We continue to view JBH as one of the most productive retailers globally with a leading revenue per Sqm metric and an operating margin (JBH Aus) and well placed to grow from the AI upgrade cycle despite some near-term gross margin pressures. However, we think the current valuation (~23x FY25e P/E, BPe), considering a 12-month period sees near term outlook for limited earnings upgrades as priced in."
Oil prices rise
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$72.20 a barrel and the Brent crude oil price is up 1.45% to US$75.75 a barrel. Traders appear to believe that oil prices have been oversold following recent weakness.
CSL results
All eyes will be on CSL Ltd (ASX: CSL) shares when the biotechnology giant releases its eagerly anticipated half year results. Goldman Sachs is forecasting total revenue of US$8,663 million for the six months ended 31 December. In addition, the broker expects CSL to report an EBIT margin of 34.8%, half year underlying EBIT of US$3,017 million (+1.7% vs consensus), and NPATA of US$2,270 million (+2.2% vs consensus).
Gold price charges higher again
ASX 200 gold miners such as Bellevue Gold Ltd (ASX: BGL) and Regis Resources Limited (ASX: RRL) could have a great session on Tuesday after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.6% to US$2,934.2 an ounce. Tariff concerns have driven the precious metal to a new record high.
