On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.2% to 8,937.1 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 mixed start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.15% higher. Wall Street was closed for the President's Day holiday but in Europe, the DAX was down 0.45%, the FTSE rose 0.25%, and the CAC edged 0.05% higher.
Oil prices rise
It could be a good session for ASX 200 energy shares such as 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$63.73 a barrel and the Brent crude oil price is up 1.3% to US$68.62 a barrel. Traders were buying oil in response to demand optimism.
New Hope shares downgraded
The team at Bell Potter thinks that New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has downgraded the coal miner's shares to a sell rating with a slightly improved price target of $4.10. It said: "We move to a sell recommendation following recent share price strength and a subdued thermal coal price outlook. NHC's low-cost operations will continue to underpin margins through the coal price cycle, funding capital expenditure commitments and supporting shareholder returns."
Gold price eases
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a subdued session on Tuesday after the gold price eased overnight. According to CNBC, the gold futures price is down 0.65% to US$5,013.1 an ounce. Traders may have been taking profit after a solid run from the precious metal.
BHP results
BHP Group Ltd (ASX: BHP) shares will be on watch on Tuesday when the mining giant releases its eagerly anticipated half-year results. According to a note out of Morgans, its analysts expect the Big Australian to report revenue of US$51.26 billion, EBITDA of US$25.98 billion, and an underlying net profit of US$5.07 billion. It said: "BHP is well funded for its current projects at WAIO, Escondida and Jansen, with the upside in metal prices amassing free cash flow. As a result, we estimate a USD 60 cent interim dividend, representing a higher-than-usual first half payout ratio."
