On Monday the S&P/ASX 200 Index (ASX: XJO) bounced back from a terrible start to end the day a few points higher. The benchmark index rose slightly to 7,528.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market is expected to push higher on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.2% higher this morning. This is despite US markets starting the week in a subdued fashion. On Wall Street the Dow Jones fell 0.2%, the S&P 500 edged lower, and the Nasdaq rose 0.2%.
Treasury Wine given neutral rating
The Treasury Wine Estates Ltd (ASX: TWE) share price could be fully valued according to analysts at Goldman Sachs. According to a note, the broker has retained its neutral rating with an improved price target of $11.60. However, this still implies potential downside of 6.1% for the wine company's shares. Goldman notes uncertainty in the commercial end of the market, especially in the ANZ region. It fears oversupply could constrain market profitability.
Oil prices slide
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$68.89 a barrel and the Brent crude oil price has fallen 0.7% to US$72.10 a barrel. Saudi price cuts have weighed on prices.
Gold price falls
It could be a subdued day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price edged lower. According to CNBC, the spot gold price is down 0.45% to US$1,825.5 an ounce. Traders may have been taking profit after a strong gain in the previous session.
Shares going ex-dividend
A number of ASX 200 shares are going ex-dividend on Tuesday and could trade lower. This includes steel producer BlueScope Steel Limited (ASX: BSL), clean energy miner IGO Ltd (ASX: IGO), financial services company IOOF Holdings Limited (ASX: IFL), energy company Origin Energy Ltd (ASX: ORG), and healthcare company Sonic Healthcare Limited (ASX: SHL).
