On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.25% to 8,959.3 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 looks set to fall on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 22 points or 0.25% lower. In the United States, the Dow Jones was down 0.1%, the S&P 500 edged slightly lower, and the Nasdaq pushed a fraction higher.
BHP results
BHP Group Ltd (ASX: BHP) shares will be on watch today when the mining giant releases its full year results. The consensus estimate is for total revenue of US$51,291 million and underlying EBITDA of US$25,759 million for the 12 months ended 30 June. Other metrics worth watching are its net debt, which is expected to be US$13,207 million, and its dividend, which is forecast to be US$1.01 per share. Elsewhere, CSL Ltd (ASX: CSL) and Woodside Energy Group Ltd (ASX: WDS) will also be releasing results.
Oil prices rise
It could be a positive session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.85% to US$63.33 a barrel and the Brent crude oil price is up 1% to US$66.53 a barrel. Oil prices pushed higher in response to the Trump-Zelenskiy meeting in Washington.
Sell Lynas shares
Lynas Rare Earths Ltd (ASX: LYC) shares are overvalued according to analysts at Bell Potter. This morning, the broker has retained its sell rating and $7.65 price target on the rare earths producer's shares. This is almost 50% lower than its current share price. It commented: "We maintain our Sell recommendation and $7.65/sh Target Price, with the view that fundamentals will ultimately prevail. However, we do recognise that the current themes pushing LYC higher (and supporting the sector more broadly) are likely to persist as tailwinds over the short term. We have seen the US play its hand with the MP Materials deal; this could form a blueprint for other sovereign investments. LYC provides a relatively clean and large-scale leverage to the sector and these themes."
Gold price eases
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session after the gold price eased overnight. According to CNBC, the gold futures price is down 0.15% to US$3,377.4 an ounce. Traders appear to be waiting for developments between Russia and the Ukraine following Trump's meetings.
