On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.3% to 8,874.5 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 in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 35 points or 0.4% lower. Wall Street was closed for a public holiday, but in Europe the DAX was down 1.35%, the FTSE was down 0.4%, and the CAC dropped 1.8%.
Oil prices flat
It could be a subdued session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices traded flat overnight. According to Bloomberg, the WTI crude oil price is US$59.44 a barrel and the Brent crude oil price is trading at US$64.12 a barrel. This reflects easing tensions in the Middle East.
BHP update
All eyes will be on BHP Group Ltd (ASX: BHP) shares on Tuesday when the mining giant releases its second quarter update. A relatively mixed result is expected from Australia's largest miner. For example, Morgan Stanley expects copper production to come in ahead of consensus estimates. Whereas Macquarie expects iron ore and copper in line with consensus estimates and metallurgical coal to miss consensus estimates by 10%.
Gold price jumps
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 jumped overnight. According to CNBC, the gold futures price is up 1.8% to US$4,676.7 an ounce. This was driven by safe haven demand after Donald Trump threatened tariffs on country's blocking his move for Greenland.
Hold Whitehaven shares
Whitehaven Coal Ltd (ASX: WHC) shares are fully valued according to analysts at Bell Potter. This morning, the broker has retained its hold rating on the coal miner's shares with an improved price target of $8.40. It said: "WHC is positioned to capitalise on improved coal markets with its portfolio of operating and development assets that are diversified by product (met/thermal) and location (Queensland/New South Wales). We have a positive long term met coal outlook, driven by constrained supply and increased demand from steel producers reliant on seaborne met coal (i.e. India). We maintain a Hold rating given WHC's current market valuation."
