5 things to watch on the ASX 200 on Tuesday

It looks like a tough session awaits Aussie investors today.

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.75% to 8,344.4 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a poor start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 73 points or 0.9% lower. In late trade on Wall Street, the Dow Jones is down 0.8%, the S&P 500 is down 0.3%, and the Nasdaq is flat.

Metcash shares downgraded

The Metcash Ltd (ASX: MTS) share price is overvalued according to analysts at Goldman Sachs. This morning, the broker has downgraded the wholesale distributor's shares to a sell rating with a reduced price target of $3.10 (from $3.80). The broker believes Metcash will underperform the market's expectations in the coming years. It said: "We cut our FY25E-27E group revenue by 1-2% and EBIT by 5-6% on lower Hardware corporate own/JV margins. Our FY24E-27E group revenue/EBIT CAGRs are 4.4%/6.9% and our FY25E-27E EBIT (ex-Horizon costs) are ~4% below FactSet consensus."

Oil prices rise

It could be a decent session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 2.1% to US$70.67 a barrel and the Brent crude oil price is up 1.75% to US$74.33 a barrel. Oil prices rose after China cut its benchmark lending rate.

CSL R&D day

CSL Ltd (ASX: CSL) shares will be on watch on Tuesday when the biotechnology giant holds its highly anticipated research and development (R&D) day. At the event, the company will talk the market through its R&D pipeline, showing investors what is in the works to drive its future growth. Bell Potter described the event as a potential catalyst to driving its shares higher when it initiated coverage on the company yesterday with a buy rating and $345.00 price target.

Gold price edges higher

ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a relatively positive session after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$2,732.3 an ounce. The gold price rally was held back by a stronger US dollar.

Should you invest $1,000 in Xero Limited right now?

Before you buy Xero Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Xero Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Broker Notes

These ASX 200 stocks could rise 25% to 40% after the market selloff

Analysts believe these shares have the potential to generate big returns over the next 12 months.

Read more »

Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A male investor sits at his desk pondering at his laptop screen with a piece of paper in his hand.
Share Market News

Is the ASX 200 on the verge of a market correction?

Here's how close we are to a market correction after another horror week.

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

Why this could be a great ASX share sector to invest in right now

This could be a smart play right now.

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

How an $8k investment in this ASX All Ords stock one-year ago is worth $58,182 today

The ASX All Ords stock has enjoyed a stellar year. But why?

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finally caught a break this Friday.

Read more »

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.
Share Market News

It's official: US stock market enters correction

The S&P 500 is now down 10.13% from its most recent peak.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Should you buy the dip on the CSL share price?

Has the market sell-off created an opportunity to buy this mega ASX 200 blue chip at an attractive price?

Read more »