The Australian share market is anticipated to recover on Tuesday after a decline at the start of the week. On Monday, the S&P/ASX 200 Index (ASX: XJO) dropped by 0.5% to close at 7,931.7 points. However, early indications suggest a potential rebound for the index.
The ASX 200 is expected to open 57 points, or 0.7%, higher today, supported by positive movement in Wall Street indices. On Monday, the Dow Jones increased by 0.3%, the S&P 500 rose by 1.1%, and the Nasdaq gained 1.6%.
Woodside Energy Update
Woodside Energy Group Ltd (ASX: WDS) will be closely watched today as it releases its second-quarter update. The company reported production of 44.9 million barrels of oil equivalent (boe) in the first quarter. To meet its full-year guidance of 185 million boe to 195 million boe for FY 2024, Woodside will need to enhance production levels. Investors will also look for updates on the company’s capital expenditure, which is projected to be between US$5 billion and US$5.5 billion.
Impact of Oil Prices
Energy shares on the ASX 200, such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR), may experience a subdued session due to a decrease in oil prices. Bloomberg reports that WTI crude oil has fallen by 0.2% to US$79.95 per barrel, while Brent crude oil is down 0.3% to US$82.36 per barrel, influenced by concerns over rising stockpiles and weak demand signals.
Paladin Energy’s Valuation
Paladin Energy (ASX:PDN) Ltd (ASX: PDN) is being highlighted as potentially undervalued. Analysts have suggested that the share price might have significant upside potential, with a target price of $15.70. This outlook reflects the company’s operation in a strong uranium market, which could enhance its valuation.
Gold Price Movement
ASX 200 gold miners such as Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) might benefit from a slight increase in gold prices. The spot gold price has edged up to US$2,400.7 per ounce, driven by optimism surrounding potential rate cuts.
Investors will be monitoring these developments closely as the Australian market aims to bounce back from the previous day's decline.