5 things to watch on the ASX 200 on Tuesday

It could be another tough day for ASX 200 investors…

| More on:
Young woman dressed in suit sitting at cafe staring at laptop screen with hands to her forehead looking tense

Image source: Getty Images

On Monday the S&P/ASX 200 Index (ASX: XJO) started the week deep in the red. The benchmark index fell 2.1% to 7,248.2 points.

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

ASX 200 expected to sink again

The Australian share market is expected to sink again on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 98 points or 1.4% lower. This follows a poor start to the week on Wall Street. The Dow Jones fell 1.8%, the S&P 500 sank 1.7%, and the Nasdaq dropped 2.2%.

Iron ore price tumbles further

Mining giants BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) will be on watch after the iron ore price pulled back further. According to Metal Bulletin, the spot iron ore price has fallen 8.8% to US$92.98 per tonne. This follows concerns about demand in China amid fears that property giant Evergrande could collapse.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a tough day after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$70.74 a barrel and the Brent crude oil price has fallen 1.4% to US$74.32 a barrel. Concerns about China’s economy weighed on prices.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.8% to US$1,765.7 an ounce. The precious metal was boosted by demand for safe haven assets due to the Evergrande-related market selloff.

Dividends being paid

A number of ASX 200 shares will be paying dividends later today to their respective shareholders. This includes mining giant BHP and energy companies Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO). In respect to the former, BHP is rewarding its shareholders with a massive 271.5 cents per share dividend.

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 more than eight 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 August 16th 2021

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.

More on Share Market News