On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.75% to 8,365.9 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 set to rebound
The Australian share market looks set for a good session on Tuesday following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 159 points or 1.9% higher. In late trade on Wall Street, the Dow Jones is up 1.5%, the S&P 500 is up 1.25%, and the Nasdaq is 1.5% higher.
Oil prices crash
It could be a difficult session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 10.3% to US$88.18 a barrel and the Brent crude oil price is down 11.6% to US$99.14 a barrel. This was driven by news that Donald Trump has paused strikes on Iranian energy infrastructure for five days.
BHP and Rio Tinto shares to rebound
It looks set to be a good session for BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares on Tuesday. Both miners' NYSE listed shares are charging higher on Monday night and up 4.5% and 3.5%, respectively. Improving investor sentiment and a strong rebound in the copper price overnight appear to be behind this.
Gold price sinks
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a poor session on Tuesday after the gold price sank overnight. According to CNBC, the gold futures price is down 3.6% to US$4,410.7 an ounce. Inflation fears have been weighing on the precious metal.
Boss Energy named as a buy
The team at Bell Potter has named Boss Energy Ltd (ASX: BOE) shares as a buy. In response to concerns over high diesel prices impacting mining margins, the broker highlights that the uranium miner's project is powered by the grid. It said: "The Honeymoon project draws power directly from the grid (connected to Broken Hill). In-situ-recovery operations by nature do not require high-diesel consuming truck and shovel fleet typically seen in open-pit operations. The only exposure is via 3rd party site deliveries for reagents." It has put a buy rating and $1.95 price target on the ASX 200 share.
