On Monday, the S&P/ASX 200 Index (ASX: XJO) had a strong start to the week. The benchmark index rose 0.7% to 8,823.4 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 good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.1% higher. In late trade in the United States, the Dow Jones is up 0.6%, the S&P 500 is up 1.15%, and the Nasdaq has stormed 2% higher.
Telstra shares rated as a hold
Telstra Group Ltd (ASX: TLS) shares are fully valued according to the team at Bell Potter. This morning, the broker has retained its hold rating and $5.10 price target on the telco giant's shares, which is a touch below its current share price. The broker isn't expecting any surprises in August, saying: "We expect little if any surprises at the upcoming result so the focus shifts to the FY27 guidance and outlook. We and the market continue to forecast mid to high single digit growth in the key metrics of underlying EBITDAaL, cash EBIT and EPS – consistent with the Connected Future 30 strategy – so, again, we see little prospect of surprise in the guidance."
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.9% to US$70.51 a barrel and the Brent crude oil price is up 1.2% to US$72.85 a barrel. Traders were bidding oil higher despite easing US-Iran tensions. They may have doubts that peace talks will hold.
Gold price tumbles
It could be a tough session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price tumbled overnight. According to CNBC, the gold futures price is down 1.7% to US$4,026.1 an ounce. Concerns over rising inflation and potential interest rate hikes weighed on the precious metal.
Consumer shares to buy
Bell Potter has named the consumer shares to buy in a difficult operating environment. They are JB Hi-Fi Ltd (ASX: JBH), Universal Store Holdings Ltd (ASX: UNI), and Nick Scali Limited (ASX: NCK). Commenting on its picks, the broker said: "We continue to favour our key preferences, JBH, UNI and NCK considering their market position, gross margin levers and balance sheet strength vs current valuation."
