5 things to watch on the ASX 200 on Tuesday

A decent session is expected for Aussie investors today.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.35% to 7,997.1 points.

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

ASX 200 expected to rise

The Australian share market is expected to rise again on Tuesday following a relatively good start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 13 points or 0.15% higher. On Wall Street, the Dow Jones was up 0.3% and the S&P 500 rose 0.1%, but the Nasdaq was 0.1% lower.

Sell Lynas shares

Lynas Rare Earths Ltd (ASX: LYC) shares are overvalued according to analysts at Bell Potter. According to a note, the broker has reaffirmed its sell rating on the rare earths producer's shares with a trimmed price target of $6.25. It said: "We maintain our sell recommendation and reduce our target price to $6.25/sh (previously $6.50/sh). Whilst we like the business, asset, and team, we believe there is significant optimism priced into the stock."

Oil prices tumble

It could be a poor session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.8% to US$61.89 a barrel and the Brent crude oil price is down 1.8% to US$65.67 a barrel. This was driven by concerns over crude oil demand.

Buy Telix shares

Telix Pharmaceuticals Ltd (ASX: TLX) shares could be a buy according to Bell Potter. In response to news that the US FDA did not approve the NDA for Pixclara (CDx101), the broker has retained its buy rating with a reduced price target of $34.00. It said: "This set back in registration in the US is of no help to clinicians or patients, nevertheless, we have seen similar outcomes on multiple occasions where the FDA does not fall into line with other regulators. Fortunately there is a path forward."

Gold price storms higher

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 1.9% to US$3,361 an ounce. Traders were buying gold after bargain hunting kicked in.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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