On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.45% to 7,064.3 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 again
The Australian share market is expected to open the day higher on Tuesday following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% higher. On Wall Street the Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ was up 0.6%.
BHP results
The BHP Group Ltd (ASX: BHP) share price will be in focus on Tuesday when the mining giant releases its full year results. According to a note out of Morgans, its analysts are forecasting BHP to report EBITDA of US$40,776 million and a net profit of US$23,844 million. This is expected to underpin a fully franked US$2.84 per share dividend. Elsewhere, Goldman is forecasting EBITDA of US$44,000 million and a US$2.90 per share dividend.
Oil prices tumble
It could be a very red day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices tumbled on Monday night. According to Bloomberg, the WTI crude oil price is down 3.45% to US$88.91 a barrel and the Brent crude oil price has dropped 3.65% to US$94.58 a barrel. Surprisingly weak economic data out of China put pressure on prices.
Goldman's bank ratings update
In response to their respective updates on Monday, the team at Goldman Sachs has downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a neutral rating with a $10.60 price target and retained their conviction buy rating on Westpac Banking Corp (ASX: WBC) shares with an improved price target of $26.55. Goldman notes that Westpac's "asset quality was run-rating better" than its previous second half forecasts.
Gold price falls
It could be a difficult day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.15% to US$1,794.60 an ounce. A strong rebound by the US dollar and rate hike concerns weighed on the precious metal.
