On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index edged 0.15% lower to 8,831 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 to edge lower
The Australian share market looks set for a subdued session on Tuesday despite a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.75%, and the Nasdaq stormed 1.1% higher.
Buy Genesis Minerals shares
Genesis Minerals Ltd (ASX: GMD) shares are good value according to Bell Potter. This morning, in response to a binding merger proposal with Vault Minerals Ltd (ASX: VAU), the broker has retained its buy rating on the gold miner's shares with a trimmed price target of $9.75. It said: "The Proposed Scheme is not subject to due diligence or financing conditions and offers a materially better strategic and financial outcome than the status quo, in our view. We retain our Buy rating and lower our price target to A$9.75, on account of the recent Magnetic Resources Limited transaction completion (A$639m). The Proposed Scheme has not been incorporated pending resolution of the RRL matching right."
Oil prices edge higher
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a positive session after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.05% to US$68.73 a barrel and the Brent crude oil price is up 0.05% to US$72.15 a barrel. This is despite OPEC announcing plans to boost its output.
Gold price charges higher
It could be a good session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher overnight. According to CNBC, the gold futures price is up 1.2% to US$4,175.7 an ounce. Easing interest rate hike expectations boosted the precious metal.
Qantas shares on watch
Qantas Airways Ltd (ASX: QAN) shares will be worth watching on Tuesday after UK airline easyJet received a US$7.3 billion takeover offer from U.S. private equity manager Castlelake. This represents a forward multiple of approximately 16.5x estimated 2027 earnings. Qantas shares are currently trading at a deep discount of around 10x estimated FY 2027 earnings.
