On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week with a decline. The benchmark index fell 0.7% to 8,625.1 points.
Will the market be able to bounce back from this on Tuesday after returning from the public holiday? Here are five things to watch:
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ASX 200 to sink
The Australian share market looks set to sink on Tuesday after a selloff on Wall Street on Friday and a mixed session on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 86 points or 1% lower. In the United States, the Dow Jones fell 0.15%, but the S&P 500 climbed 0.3% and the Nasdaq pushed 0.85% higher.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.75% to US$91.22 a barrel and the Brent crude oil price is up 1.2% to US$94.20 a barrel. This was driven by an escalation in tensions in the Middle East.
REA shares downgraded
REA Group Ltd (ASX: REA) shares will be in focus today after the team at Bell Potter put out a bearish broker note. According to the note, the broker has downgraded the property listings company's shares all the way from a buy rating to a sell rating with a heavily reduced price target of $137.00 (from $217.00). It said: " We downgrade our recommendation to Sell (prev. Buy). REA currently trades around 28x FY27e P/E, which is a level it has historically only traded at during EPS declines; VA consensus currently anticipates 14% EPS growth in FY27 (BPe: -2%). REA also appears expensive against other ASX classifieds on a FCF growth basis at 1.7x EV/FCFg in FY27e."
Gold price softens
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price softened overnight. According to CNBC, the gold futures price is down 0.3% to US$4,352.6 an ounce. Rising oil prices, inflation, and rate hike concerns have weighed on the precious metal.
Buy Eagers shares
Eagers Automotive Ltd (ASX: APE) shares have been given the thumbs up by the team at Bell Potter. This morning, the broker has retained its buy rating with a slightly trimmed price target of $28.00 (from $28.75). It said: "In our view the stock looks reasonable value trading on PE ratios of c.20x and 17x in 2026 and 2027 where the latter is the first full year of the CanadaOne investment (so is the more relevant in our view). We also see the recent trading update at the AGM as effectively "cleansing" the market as the H1 result has now been largely flagged – so there should be no surprises."
