On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a solid gain. The benchmark index rose 0.35% to 8,697.7 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 fall
The Australian share market looks set to give back yesterday's gains on Tuesday despite a reasonably positive 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 0.7% lower. In the United States, the Dow Jones was down 0.15%, the S&P 500 rose slightly, and the Nasdaq pushed 0.3% higher.
Hold Fortescue shares
Fortescue Ltd (ASX: FMG) shares are a hold according to Bell Potter. In response to its quarterly update, the broker has retained its hold rating with an improved price target of $17.40 (from $15.87). It said: "FMG's core iron ore operations have outperformed on costs and could sustain EBITDA margins into FY26. However, we still forecast a lower iron ore price and declining earnings and dividends – though declining less than previously forecast due to the reduced energy division expenditure. We retain our Hold recommendation on a 10% higher Target Price of $17.40/sh."
Oil prices rise
It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$67.05 a barrel and the Brent crude oil price is up 2.9% to US$70.39 a barrel. Traders were buying oil after the US and EU signed a trade deal.
Liontown update
Liontown Resources Ltd (ASX: LTR) shares will be on watch on Tuesday when the lithium miner releases its fourth quarter update. The team at Macquarie Group Ltd (ASX: MQG) is expecting production to come in ahead of expectations at 102kt for the three months. It said: "Our 4QFY25 production estimates are 3% above VA consensus at 102kt, with 2HFY25 total output at the lower end of 170-185kt guidance. Balancing production growth with capital investment is a key focus in the current low lithium price environment, in our view."
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session after the gold price tumbled overnight. According to CNBC, the gold futures price is down 0.55% to US$3,316.9 an ounce. This was driven by reduced demand for safe haven assets after the US and EU signed a trade deal.
