Market Outlook for Tuesday
On Thursday, the S&P/ASX 200 Index fell into the red, dropping 1.05% to 8,579.5 points. The question remains whether the market will rebound on Tuesday. Here are five key factors to watch:
ASX 200 Set to Open Flat
The Australian share market is expected to open flat on Tuesday, despite a positive start in the US. According to the latest SPI futures data, the ASX 200 is poised to open at the same level it closed last week. In late trade on Wall Street, the Dow Jones rose 0.35%, the S&P 500 gained 0.45%, and the Nasdaq increased by 0.55%.
Oil Prices Rise
Energy shares on the ASX 200 could benefit from rising oil prices. Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) may see positive movement after oil prices climbed overnight. According to Bloomberg, the WTI crude oil price rose 0.8% to US$112.44 per barrel, while the Brent crude oil price increased 0.3% to US$109.35 per barrel. The rise in prices followed Donald Trump’s threats to bomb Iranian infrastructure.
Lovisa Given Hold Rating
Analysts at Bell Potter have maintained a hold rating on Lovisa Holdings Ltd (ASX: LOV) with a reduced price target of $24.00, down from $33.50. The broker noted that the fashion jewellery retailer has strong gross margin outlooks, long-term store opportunities, and potential from changes in competitive dynamics across the US, UK, and South Africa. However, risks in the core Australian market remain, including competition and declining comparable store sales.
Gold Price Edges Higher
Gold shares on the ASX 200 could perform well on Tuesday as the gold price edged higher overnight. According to CNBC, gold futures rose 0.1% to US$4,684.1 per ounce. Traders were buying gold as Trump’s deadline for Iran approached.
Nufarm Named as a Buy
Bell Potter has recommended Nufarm Ltd (ASX: NUF) as a buy with a price target of $3.60, suggesting over 70% potential upside for investors. The agricultural chemicals company is expected to benefit from strong demand for crop protection products. The broker noted that this is a critical time for NUF, with many markets showing supportive conditions.
Additional Investment Insights
For investors considering Evolution Mining Limited (ASX: EVN), it’s worth noting that Motley Fool investing expert Scott Phillips has highlighted five stocks he believes are better buys than EVN. His service, Motley Fool Share Advisor, has provided members with stock picks that have significantly outperformed the market.
More reading:
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– Brokers name 3 ASX shares to buy right now
– Here are the top 10 ASX 200 shares today
– ASX 200 suddenly turns lower as fresh war fears hit before Easter
James Mickleboro, a Motley Fool contributor, has positions in Lovisa. The Motley Fool Australia’s parent company, Motley Fool Holdings Inc., has positions in and has recommended Lovisa. The Motley Fool Australia has also recommended Lovisa. The Motley Fool has a disclosure policy. This article provides general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
