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ASX 200 Expected to Open Lower on Tuesday

ASX 200 Expected to Open Lower

The Australian share market is poised to open lower on Tuesday, following a positive start on Wall Street. The ASX 200 is predicted to open 7 points or 0.1% lower, reflecting cautious sentiment among investors. However, amidst this overall outlook, opportunities arise for investors with a high risk tolerance. 

Liontown Resources Ltd (ASX: LTR) experienced a sell-off due to disappointing news about the Kathleen Valley Lithium Project. Despite this setback, brokerage firm Bell Potter sees it as a buying opportunity, maintaining a speculative buy rating with a reduced price target of $1.60, implying a 70% upside.

The ASX 200 is facing a slightly negative start, with expectations of a 0.1% decline. Despite this, astute investors are closely monitoring Liontown Resources Ltd. The sell-off in the company’s shares following the news about the Kathleen Valley Lithium Project presents an opportunity for those with a high-risk tolerance. 

Bell Potter, recognising the strategic value of the project in terms of development stage, long mine life, and location, maintains a speculative buy rating with a revised price target of $1.60, indicating a potential 70% upside.

In other news, ASX 200 energy shares, Beach Energy Ltd (ASX: BPT), and Karoon Energy Ltd (ASX: KAR), may experience a positive session as oil prices surge.

WTI crude oil price increased by 3.2% to US$75.75 a barrel, while Brent crude oil price rose by 2.5% to US$80.52 a barrel. The surge in oil prices was attributed to a drone attack on Russian supplies, creating a favourable environment for energy-related stocks.

Additionally, Bell Potter suggests that investors should consider buying shares of Lynas Rare Earths Ltd (ASX: LYC) following its quarterly update.

Despite a revised price target of $7.60, down from $8.50, Bell Potter maintains a buy rating on the rare earth producer’s shares. Lynas Rare Earths is recognized as a high-quality business and a significant supplier of separated rare earths to Western economies, making it an attractive investment opportunity.

However, the declining gold price may impact ASX 200 gold shares, including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL).

The spot gold price dropped by 0.3% to US$2,023 an ounce, driven by fading US Federal Reserve rate cut optimism. This decline emphasizes the challenges gold-focused companies face in the current market environment.