On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.4% to 9,031.9 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 rise again
The Australian share market looks set to rise on Tuesday following a strong start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 44 points or 0.5% higher. In late trade in the United States, the Dow Jones is up 1.2%, the S&P 500 is 1.1% higher, and the Nasdaq has risen 1.4%.
BHP update
BHP Group Ltd (ASX: BHP) shares will be on watch on Tuesday when the mining giant releases its first quarter update. According to a note out of Macquarie Group Ltd (ASX: MQG), the broker is expecting the Big Australian's copper, iron ore, and coal production to fall short of estimates. It said: "We expect a weaker quarter (vs consensus) in Iron Ore and Copper (-3% below VA), with a larger 6% miss in Met Coal, with production across all commodities expected to be lower on a QoQ basis. While we have not observed shipments impacts to BHP following the recent iron ore sales challenges by CMRG, a resolution remains uncertain and the effects could be delayed given most sales are on a forward basis."
Oil prices soften
It could be a subdued session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.1% to US$57.47 a barrel and the Brent crude oil price is down 0.55% to US$60.95 a barrel. Supply glut concerns weighted on prices.
Buy DroneShield shares
DroneShield Ltd (ASX: DRO) shares are good value according to analysts at Bell Potter. This morning, in response to the counter-drone technology company's quarterly update, the broker has retained its buy rating and lifted its price target to $5.30 (from $3.70). It said: "We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions."
Gold price jumps
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a great session on Tuesday after the gold price jumped overnight. According to CNBC, the gold futures price is up 4.1% to US$4,383.6 an ounce. Rate cut bets and trade war concerns gave the precious metal a boost.
