On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 7,306.4 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 jump
The Australian share market looks set to return to form on Tuesday following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.55% higher. On Wall Street, the Dow Jones was up 0.5%, the S&P 500 rose 0.4%, and the NASDAQ climbed 0.2%.
Oil prices climb
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 2.4% to US$78.95 a barrel and the Brent crude oil price is up 2.3% to US$82.92 a barrel. Oil prices hit a three-month high on tight supply conditions.
Pilbara Minerals update
The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch following the release of the lithium miner's fourth-quarter update. Pilbara Minerals reported an 18% decline in revenue to $800 million after a sizeable pullback in lithium prices offset record production. Full-year revenue rose 238% to $4 billion. In respect to pricing, Pilbara Minerals reported an average realised price almost 23% lower than consensus estimates.
Gold price lower
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough session after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,957.1 an ounce. Traders appear nervous ahead of the next US Federal Reserve meeting.
South32 shares downgraded
South32 Ltd (ASX: S32) shares will be on watch today after Goldman Sachs downgraded the mining giant to a neutral rating and cut its price target by 10% to $3.70. It said: "We revise our FY23/24 EPS by -8%/-7% on the lower realised pricing and reduced FY24E production across Al, Nickel and met coal, increased ferro-nickel pricing discounts, and higher unit costs at Aus Mn."
