On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell slightly to 8,981.4 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to rise on Tuesday following a relatively positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.2% higher. In late trade in the United States, the Dow Jones is down 0.1%, but the S&P 500 is up 0.4% and the Nasdaq is 0.7% higher.
Buy Northern Star shares
The team at Bell Potter thinks that Northern Star Resources Ltd (ASX: NST) shares could still be cheap. This morning, the broker has retained its buy rating on the gold miner's shares with an improved price target of $30.00 (from $20.85). It said: "We believe NST will enter a cashflow inflection period over the coming ~2 years, underpinned by strong Australian dollar gold prices, which will drive shareholder returns higher."
Oil prices rebound
It could be a decent session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$61.79 a barrel and the Brent crude oil price is up 1.6% to US$65.57 a barrel. This was driven by news that OPEC is increasing its output by less than expected.
Buy EOS shares
Electro Optic Systems Holdings Ltd (ASX: EOS) shares could still be heading higher from here according to Bell Potter. This morning, the broker has retained its buy rating on the defence and space company's shares with an improved price target of $11.20. It said: "EOS is positioned as a market leader in counter-UAS solutions, in particular directed energy, and is fully leveraged to increases in defence budgets globally magnified by higher spending allocations to counter-drone technology."
Gold price breaks record
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price rose to a new record high. According to CNBC, the gold futures price is up 2% to US$3,987.7 an ounce. Traders were buying the safe haven asset amid increased economic and political uncertainty.
