On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a disappointing decline. The benchmark index fell 0.85% to 8,882.8 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 rebound
The Australian share market looks set to rebound on Tuesday following a good 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% higher. In late trade in the United States, the Dow Jones is up 1.35%, the S&P 500 is up 1.55%, and the Nasdaq has stormed 2.2% higher.
Rio Tinto update
Rio Tinto Ltd (ASX: RIO) shares will be on watch on Tuesday when the mining giant releases its third quarter update. According to a note out of Macquarie Group Ltd (ASX: MQG), the broker is expecting a performance largely in line with forecasts. It said: "RIO broadly in line, slightly lower on Copper: We expect overall 3Q performance to be broadly in line with VA estimates, with key differences in copper production, where our estimate of 200kt is ~3% below VA estimates of 206kt. Commissioning of Simandou is a near term focus."
Oil prices rebound
It could be a decent session for ASX 200 energy shares including 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 1.35% to US$59.69 a barrel and the Brent crude oil price is up 1.25% to US$63.52 a barrel. This was driven by US-China trade talk optimism.
Pro Medicus shares upgraded EOS shares
Pro Medicus Ltd (ASX: PME) shares will be on watch this morning after Morgans upgraded the health imaging technology company. It has put a hold rating and $290.00 price target on its shares. The broker said: "PME continues to trade on elevated multiples, even at our target price with FY26F PE of ~200x, EV/EBITDA ~130x, and PEG ratio of 5x. While these metrics reflect the company's exceptional quality and growth profile, they also imply limited valuation support in the absence of new large contract announcements which is an opaque and often protracted process. At current levels, the risk-reward profile justifies a more balanced stance. Buyers on weakness, trimmers on strength. Following a model roll forward, the valuation increases marginally to A$290."
Gold price jumps
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price jumped to a new record high. According to CNBC, the gold futures price is up 3.1% to US$4,125 an ounce. Traders were buying the safe haven asset in response to rate cut optimism.
