Image source: Getty Images
On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell 0.2% to 7,750.7 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall again
The Australian share market is expected to fall again on Tuesday despite a good start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% lower. On Wall Street, the Dow Jones was up 0.1%, the S&P 500 rose 0.3%, and the Nasdaq charged 0.8% higher.
Buy Xero shares
The Xero Ltd (ASX: XRO) share price could be dirt cheap according to analysts at Goldman Sachs. This morning, the broker has reiterated its conviction buy rating with an improved price target of $180.00. This implies potential upside of 34% for investors from current levels. It said: “Following our June UK trip, attending Xerocon and meeting with accountants/competitors/experts, we are encouraged with the positive feedback (vs. our 2022 trip), in particular around its refreshed strategy and increased focus. [We] increase our 12m TP +10% to A$180 (36X EBITDA, from 33X) given increased confidence in the UK, a key growth market for Xero. Reiterate Buy (on CL). “
Oil prices race higher
It looks set to be a great session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices raced higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$83.44 a barrel and the Brent crude oil price is up 2% to US$86.72 a barrel. This was driven by optimism that summer fuel demand will tighten the market.
Hub24 named as a buy
Hub24 Ltd (ASX: HUB) shares are a buy according to analysts at Bell Potter. This morning, the broker has initiated coverage on the investment platform provider’s shares with a buy rating and $53.20 price target. It commented: “Our favourable investment view is supported by: (1) changes in advice, with investment professionals shifting away from institutionally owned platforms while seeking comprehensive technology solutions; (2) single digit market share and leading capital flows; and (3) increases to the super guarantee contribution and rollovers into self-managed super funds.”
Gold price edges higher
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a reasonably good session on Tuesday after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.1% to US$2,342.1 an ounce. Traders were buying gold ahead of the release of US jobs data.