5 things to watch on the ASX 200 on Tuesday

Afterpay Ltd (ASX:APT) and Iluka Resources Limited (ASX:ILU) shares will be on watch on the ASX 200 on Tuesday…

| More on:
Business woman watching stocks and trends while thinking

Image Source: Getty Images

On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose ever so slightly to 7,065.6 points.

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

ASX 200 expected to fall

The Australian share market looks set to trade lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones fall 0.35%, the S&P 500 drop 0.5%, and the Nasdaq tumble 1% lower.

Oil prices rise

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices climbed again. According to Bloomberg, the WTI crude oil price is up 0.5% to US$63.43 a barrel and the Brent crude oil price has risen 0.5% to US$67.11 a barrel. Weakness in the US dollar was supportive of oil prices

Iluka rated as a buy

The Iluka Resources Limited (ASX: ILU) share price is in the buy zone according to Goldman Sachs. The broker has put a buy rating and $8.30 price target on the mineral sands producer’s shares, which implies potential upside of almost 13%. Goldman likes Iluka due to its compelling mineral sands and rare earth growth potential, the Zircon market entering a deficit this year, and its attractive valuation.

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 dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,770.70 an ounce. Rising bond yields knocked the precious metal off its seven-week high.

Tech shares on watch

Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) shares could come under pressure today after a pullback in US tech stocks overnight. The Nasdaq index fell 1% on Monday after bond yields widened. As the local tech sector tends to follow the Nasdaq’s lead, this doesn’t bode well for Tuesday’s session.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Top 10 asx shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »

Piggy bank rocketing.
52-Week Highs

3 ASX All Ordinaries shares smashing multi-year highs on Tuesday

Let's take a closer look.

Read more »

Man holding different Australian dollar notes.
Bank Shares

3 reasons this broker thinks the NAB share price is great value

NAB shares could be great value according to Goldman Sachs...

Read more »

ANZ ASX 200 banks capital return Group of investors madly grabbing for cash on city street.
Capital Raising

Chalice share price remains frozen despite capital raise update

Chalice is seeking to bolster its balance sheet to fund its exploration activities.

Read more »

Red arrow going down, symbolising a falling share price.
Share Fallers

Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling

These ASX shares are in the red on Tuesday. Some more than others...

Read more »

Share Gainers

The Lynas share price has surged 15% in 2 weeks. What’s the deal?

Investors continue driving up the Lynas share price in May.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Why Allkem, NAB, Pushpay, and Virgin Money UK shares are rising

These ASX shares are pushing higher today...

Read more »

A man working in the stock exchange.
Share Market News

Here are the 3 most traded ASX 200 shares on Tuesday

We take a look at the most traded ASX 200 shares by volume today.

Read more »