On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard and managed to record the smallest of gains. The benchmark index rose a single point to 7,750 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 edge lower
The Australian share market is expected to edge lower on Tuesday following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. In the United States, the Dow Jones was down 0.2% and the S&P 500 was down a fraction, but the NASDAQ rose 0.3%.
BHP makes new takeover offer
The BHP Group Ltd (ASX: BHP) share price will be on watch today after the mining giant made another offer to acquire Anglo American plc (LSE: AAL). BHP has increased its offer to 0.8132 BHP shares and ordinary shares in each of Anglo American Platinum and of Kumba Iron Ore. This compares to its previous offer of 0.7097 BHP shares per share. However, it hasn't been enough for the Anglo American board, which has rejected the offer.
Oil prices charge higher
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$79.14 a barrel and the Brent crude oil price is up 0.75% to US$83.42 a barrel. Oil demand optimism boosted prices overnight.
Fletcher Building rated neutral
Fletcher Building Ltd (ASX: FBU) shares are about fair value according to Goldman Sachs. This is despite the building products company's shares crashing to a multi-year low on Monday following the release of a disappointing market update. In response to the update, Goldman has retained its neutral rating with a $3.05 price target (from $3.70). It said: "We believe the valuation appears undemanding on a through-the-cycle basis. However, we expect leverage to weigh on valuation. Specifically, we estimate that ND:EBITDA will peak at 2.2x in Dec24, which is above management's target range of 1-2x."
Gold price tumbles
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough session on Tuesday after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.4% to US$2,342.2 an ounce. Traders appear to have doubts over the outlook for rate cuts in the United States.
