On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on an underwhelming note. The benchmark index fell 0.25% to 7,161.6 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to tumble on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.6% lower. This is despite the US and UK markets being closed for public holidays. On mainland Europe, the DAX fell 0.6% and the CAC dropped 0.6% following the release of strong inflation data.
Oil prices push higher
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the rise today after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.9% to US$66.91 a barrel and the Brent crude oil price has risen 1.1% to US$69.46 a barrel. Oil prices rose amid expectations that demand will outstrip supply.
Link given neutral rating
The Link Administration Holdings Ltd (ASX: LNK) share price could be fully valued according to one leading broker. In response to news that the company is undertaking an IPO of its PEXA business, Goldman Sachs has retained its neutral rating and $5.06 price target. Goldman commented: “LNK is not crystalizing much value through the process, and 2) shareholders will bear market risk whilst LNK determines when / how this might occur.”
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.25% to US$1,909.5 an ounce. The precious metal was given a boost from strong inflation data.
Iron ore price rebounds
It could be a good day for mining giants BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) after the iron ore price rebounded. According to Metal Bulletin, the spot iron ore price jumped 4.4% to US$198.83 a tonne following a rise in Chinese steel prices.