5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell 0.15% to 7,481.7 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Tuesday despite a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 3 points higher. In late trade in the United States, the Dow Jones is down 0.55%, the S&P 500 is down 1%, and the NASDAQ is down 1.6%. Rate hike jitters are weighing on the US market.

Oil prices tumble

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$78.09 a barrel and the Brent crude oil price is down 2% to US$84.92 a barrel. Oil prices fell after data showed that Russian exports remain strong.

Core Lithium rated as a sell

The Core Lithium Ltd (ASX: CXO) share price remains overvalued according to analysts at Goldman Sachs. Although the broker was pleased with the progress the lithium developer is making at the Finniss project, it has reiterated its sell rating and 95 cents price target. Goldman said: “DMS construction progressing, but valuation remains well ahead of peers.”

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.4% to US$1,937.5 an ounce. Traders have been selling gold ahead of the US Federal Reserve’s rate decision later this week.

Newcrest upgraded

One gold miner that could have a better day is Newcrest Mining Ltd (ASX: NCM). That’s because Morgans has upgraded the company’s shares to an add rating with a $25.70 price target. It said: “Trailing its smaller gold peers, we see an emerging value proposition on offer in NCM, which benefits from mine diversification, solid margins, and long-life reserves.”

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 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why lithium prices could be ‘higher for longer’: Macquarie
• Investing in ASX 200 energy shares? Here’s why the oil price may already have hit its 2023 lows
• Why Block, Core Lithium, Lynas, and Xero shares are charging higher today

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 Scott Phillips.

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