On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a big gain. The benchmark index rose 1.85% to 8,870.1 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 to rise again
The Australian share market looks set to rise again on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 33 points or 0.35% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is up 0.65%, and the Nasdaq is up 1.15%.
Oil prices rise
It could be a good session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$64.43 a barrel and the Brent crude oil price is up 1.6% to US$69.12 a barrel. Traders were buying oil in response to rising US-Iran tensions.
Buy CAR Group shares
The team at Bell Potter thinks that CAR Group Limited (ASX: CAR) shares are undervalued. In response to its half-year results, the broker has retained its buy rating on the auto listings company's shares with a trimmed price target of $39.80. It said: "CAR's global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets. Retain Buy."
Gold price storms higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have another good session on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 2.3% to US$5,094.2 an ounce. The precious metal was boosted by a weaker US dollar.
Sims update
Sims Ltd (ASX: SGM) shares will be on watch on Tuesday after the scrap metal company made an announcement after the market close on Monday. Sims revealed that it has entered into an agreement to purchase assets of TCT Trading for US$66.5 million. It advised that this is seen as a key component to consolidating its Houston operations and significantly reducing its operating cost base. The company has also entered into an agreement to sell its nearby Mayo Shell property in Houston.
