On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a heavy decline. The benchmark index fell 1% to 8,778.6 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 decent start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 81 points or 0.95% higher. In late trade on Wall Street, the Dow Jones is up 1.1%, the S&P 500 is up 0.65%, and the Nasdaq is up 0.7%.
Oil prices sink
It could be a tough session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 4.9% to US$62.03 a barrel and the Brent crude oil price is down 4.4% to US$66.29 a barrel. Traders were selling oil in response to easing US-Iran tensions.
ResMed upgraded
The team at Bell Potter thinks that ResMed Inc. (ASX: RMD) shares are good value at current levels. The broker has upgraded the sleep disorder treatment company's shares to a buy rating with a $47.73 target price. It said: "2Q beat across the board, with double-digit revenue and earnings growth, further gross margin expansion and solid cash generation. Sleep and respiratory sales were strong in both regions, with above-market growth in the Americas and ROW returning to market growth, while SaaS beat expectations, but remained subdued by residential care headwinds. Operating leverage improved again, with gross margin gains from manufacturing and logistics efficiencies, and FY26 guidance tightened to 62-63% (from 61-63%), reinforcing confidence in ongoing margin progression."
Gold price falls again
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have another poor session on Tuesday after the gold price fell again overnight. According to CNBC, the gold futures price is down 1.85% to US$4,670 an ounce. The precious metal has been sold off since Donald Trump nominated his next US Federal Reserve chief.
Hold CSL shares
CSL Ltd (ASX: CSL) shares are a hold according to analysts at Bell Potter. This morning, the broker has reaffirmed its hold rating and $195.00 price target on the biotech giant's shares. It said: "At 17x PE, CSL trades at a significant discount to its historical average and below domestic peers, however we consider this to be justified considering the low organic growth outlook, earnings growth below peers, and blows to credibility following the Seqirus de-merger pivot and recent downgrades to long-term guidance."
