On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a positive note. The benchmark index rose 0.4% to 8,692 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
The Australian share market looks set to rise again on Tuesday following a strong night in Europe. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.25% higher. In the United States, Wall Street was closed for the Memorial Day holiday. But in Europe, the DAX rose 2%, the CAC climbed 1.75%, and the FTSE pushed 0.2% higher.
Oil prices sink
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Tuesday after a poor night for oil prices. According to Bloomberg, the WTI crude oil price is down 6.5% to US$90.30 a barrel and the Brent crude oil price is down 7% to US$96.30 a barrel. This was driven by optimism that the US and Iran could soon sign a peace deal and reopen the Strait of Hormuz.
Goodman results
All eyes will be on Goodman Group (ASX: GMG) shares on Tuesday when the industrial property giant releases its third-quarter results. The market is expecting Goodman to reaffirm its FY 2026 guidance for earnings per share growth of 9%. However, the team at Morgan Stanley sees scope for management to upgrade its guidance because of some key transactions that have occurred since its last update.
Gold price storms higher
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) will be on watch on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,573.6 an ounce. The gold price rose in response to easing oil prices, which has reduced interest rate hike expectations.
Wesfarmers shares upgraded
Wesfarmers Ltd (ASX: WES) shares are good value according to analysts at Morgans. The broker has upgraded the Bunnings owner's shares to an accumulate rating (from trim) with a slightly improved price target of $81.10 (from $80.50). It said: "WES's share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. […] In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term."
