On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a disappointing decline. The benchmark index fell 0.7% to 8,635 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 fall again
The Australian share market looks set to fall again on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% lower. In late trade in the United States, the Dow Jones is down 0.1%, the S&P 500 is 0.1% lower, and the Nasdaq has fallen 0.4%.
Oil prices drop
It could be a poor session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1% to US$56.86 a barrel and the Brent crude oil price is down 0.85% to US$60.60 a barrel. This was driven by optimism over a Russia-Ukraine peace deal after the latter agreed to scrap its NATO membership application.
Orica AGM
Eyes will be on Orica Ltd (ASX: ORI) shares on Tuesday when the commercial explosives company holds its annual general meeting. There's a chance the ASX 200 share will provide the market with a trading update ahead of the main event.
Gold price edges higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a decent session on Tuesday after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.25% to US$4,339.2 an ounce. Traders were buying gold ahead of the release of US economic data.
Buy EOS shares
Electro Optic Systems Holdings Ltd (ASX: EOS) shares could be great value despite rising almost 400% this year. According to a note out of Bell Potter, this morning, its analysts have reiterated their buy rating on the space and defence company's shares with an improved price target of $9.00 (from $8.10). It said: "EOS is positioned as a market leader in C-UAS solutions and is leveraged to increasing budget allocations to C-UAS technologies. We see positive news flow over the next 6 months stemming from CUAS and RWS contract awards."
