5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index fell 1.15% to 6,602.2 points.

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

ASX 200 expected to rebound

The Australian share market is expected to open the day higher on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% higher. This is despite Wall Street taking a tumble last night with the Dow Jones dropping 0.5%, the S&P 500 falling 1.15%, and the NASDAQ sinking 2.25%.

J Capital targets Lake Resources

The Lake Resources N.L. (ASX: LKE) share price will be on watch today after short seller J Capital targeted the lithium developer. It commented: “Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would.”

Oil prices fall

It could be a subdued day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$103.50 a barrel and the Brent crude oil price has fallen 0.45% to US$106.53 a barrel. Concerns about rising COVID cases in China weighed on prices.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 0.6% to US$1,731.2 an ounce. A strong US dollar pushed gold close to a nine-month low.

Costa given buy rating

The Costa Group Holdings Ltd (ASX: CGC) share price came under pressure on Monday. One leading broker that sees this as a buying opportunity is Goldman Sachs. This morning the broker reiterated its buy rating with a $3.65 price target. It said: “We believe CGC is well positioned to deliver strong earnings growth in CY22/CY23/CY24.”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Could the Nickel Industries share price more than double from here?
• Here are the top 10 ASX shares today
• Why Costa, Domino’s, EML, and Novonix shares are dropping
• Why are these ASX 200 lithium shares tumbling today?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended COSTA GRP FPO. 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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