On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a subdued note. The benchmark index fell 0.3% to 7,299.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to drop on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% lower this morning. This follows a mixed start to the week on Wall Street. In late trade, the Dow Jones has dropped 0.3%, the S&P 500 has fallen 0.2%, and the Nasdaq is trading flat.
Iron ore price surges
It could be a good day for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares after the spot benchmark iron ore price surged higher overnight. According to Metal Bulletin, the spot iron ore price has jumped 9.4% to US$135.03 a tonne. This was driven by supply concerns.
Oil prices charge higher
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have strong days after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$80.56 a barrel and the Brent crude oil price has risen 1.5% to US$83.64 a barrel. Oil prices have hit multi-year highs amid a rebound in global demand.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down 0.1% to US$1,755.1 an ounce. A strengthening US dollar weighed on the price of the precious metal.
Newcrest rated as a buy
The team at Goldman Sachs see a lot of value in the Newcrest Mining Ltd (ASX: NCM) share price. This morning the broker retained its buy rating but trimmed its price target on the gold miner’s shares slightly to $30.50. This implies potential upside of 27% over the next 12 months. It commented: “NCM has the strongest balance sheet in over a decade, enabling it to fund value-accretive growth projects over the next 5-10 years and reducing project risk.”
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
- Here are the top 10 ASX shares today
- Here are the 3 heaviest traded ASX 200 shares on Monday
- Top broker tips BHP (ASX:BHP) share price to rise 48%
- ASX 200 energy shares rise amid market sell-off
- ASX 200 (ASX:XJO) midday update: Star shares crash, tech shares tumble
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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