On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a bang. The benchmark index jumped 1.4% to 8,894 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 fall
The Australian share market looks set for a tough session on Tuesday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.45% lower. In late trade in the United States, the Dow Jones is up 0.25%, but the S&P 500 is down 0.2% and the Nasdaq is 0.5% lower.
Buy EOS shares
Electro Optic Systems Holdings Ltd (ASX: EOS) shares could be good value according to analysts at Bell Potter. This morning, in response to the defence and space company's quarterly update, the broker has retained its buy rating with an improved price target of $12.60 (from $12.50). It said: "We retain our Buy rating and raise TP to $12.60 on higher multiple. EOS is positioned as a market leader across many C-UAS verticals and is leveraged to increasing defence budget allocations to C-UAS technologies. Key catalysts over next 3-12 months: Large MARSS C2 Middle East signings and two large UAE HELW JV orders."
Oil prices sink
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be under pressure today after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 7.3% to US$82.78 a barrel and the Brent crude oil price is down 8.5% to US$88.58 a barrel. Traders were selling oil after the US and Iran paused fighting.
Gold price rises
It could be a decent session for ASX 200 gold shares Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) after the gold price rose overnight. According to CNBC, the gold futures price is up 0.15% to US$4,076 an ounce. Falling oil prices have reduced US interest rate hike bets, which is good news for the precious metal.
Buy Santana Minerals shares
The team at Bell Potter continues to see significant value in Santana Minerals Ltd (ASX: SMI) shares. This morning, the broker has responded positively to the gold explorer's latest drilling update and has retained its speculative buy rating and $1.70 price target. It said: "The BOGP is one of the most advanced and highest margin greenfield gold projects on the ASX. Despite the technical progress, the share price has traded lower on perceived risk around the pending FTA Determination. In our view, the project is technically robust, designed to exacting standards and operating conditions that stand up to intense scrutiny."
