On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day deep in the red. The benchmark index fell 1.4% to 6,898.5 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 expected to rebound
The Australian share market looks set to rebound on Tuesday following a solid start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 50 points or 0.7% higher. In late trade in the United States, the Dow Jones is up 1.15%, the S&P 500 is up 0.8%, and the NASDAQ is up 0.3%.
Oil prices recover
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a better day after oil prices recovered a touch overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$67.61 a barrel and the Brent crude oil price is up 1.1% to US$73.79 a barrel. Traders appear to believe that oil prices were oversold.
Telstra rated as a buy
The Telstra Group Ltd (ASX: TLS) share price is great value according to analysts at Goldman Sachs. Following a review of the telecoms sector, the broker has reiterated its buy rating and $4.60 price target on its shares. It commented: "We continue to prefer Telstra (Buy) within the ANZ Telecoms sector, given its defensive low risk earnings (and dividend) growth."
Gold price edges lower
It could be a softer day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,987.6 an ounce. Improving risk sentiment appears to have softened demand for the safe haven asset.
Incitec Pivot divestment
The Incitec Pivot Ltd (ASX: IPL) share price will be one to watch after the chemicals company announced the sale of its Waggaman operation in the United States to CF Industries for $2.5 billion. As part of the deal, the company has signed a 25-year ammonia supply agreement. The net cash proceeds from the sale are intended to be allocated in line with its capital allocation framework.
