5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.45% to 7,180.8 points.

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

ASX 200 expected to rise

The Australian share market looks set to rebound on Tuesday following a decent night of trade on Wall Street amid interest rate worries. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% higher. In late trade in the United States, the Dow Jones is down 1.6%, the S&P 500 is down 2.05%, and the NASDAQ has tumbled 2.2%.

Treasury Wine named as a buy

The Treasury Wine Estates Ltd (ASX: TWE) share price remains good value according to analysts at Goldman Sachs. This morning, the broker reiterated its buy rating on the wine giant’s shares with a $14.70 price target. It said: “We continue to forecast sustainable growth (Sales 7% and EPS 16% CAGR FY22-25e) from penetration and mix growth across Asia, as well as US.”

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a great day after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$73.12 a barrel and the Brent crude oil price has risen 2.4% to US$77.95 a barrel. Oil prices jumped on supply risks following a major outage in North America.

Mining giants under pressure

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could come under pressure on Tuesday after the iron ore price pulled back by almost 2% to US$110.25. This appears to have been the catalyst for the two miners dropping approximately 2% on Wall Street overnight.

Gold price falls

Gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough day after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.1% to US$1,790.7 an ounce. Nervous trades sold down the gold price ahead of the release of US inflation data and the US Fed meeting.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 20% so far this year, are Wesfarmers shares now a no-brainer buy?
• Here are the top 10 ASX 200 shares today
• Why is the Woodside share price smashing the ASX 200 on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Is Xero a ‘safe’ ASX share?

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 Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OyUkiZe