5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the ASX 200 on Tuesday…

Investor sitting in front of multiple screens watching share prices

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Monday, the S&P/ASX 200 Index (ASX: XJO) was back on form and started the week with a strong gain. The benchmark index rose 1.2% to 7,149.4 points.

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

ASX 200 expected to sink

The Australian share market looks set to give back the majority of yesterday's gains on Tuesday. This follows a volatile start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1.05% lower. In late trade, the Dow Jones is flat, the S&P 500 has fallen 0.65%, and the Nasdaq is down 1.8%. The Dow was up as much as 450 points at one stage before paring its gains.

Oil prices fall heavily

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices sank. According to Bloomberg, the WTI crude oil price is down 7.3% to US$101.42 a barrel and the Brent crude oil price has fallen 6.7% to US$105.14 a barrel. This follows talks between Russia and Ukraine, as well as new COVID lockdowns in China.

Rio Tinto acquisition

The Rio Tinto Limited (ASX: RIO) share price will be on watch today after it announced a non-binding proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill that it doesn't already own. The mining giant has made an all-cash offer of ~US$2.7bn. If the deal completes, Rio Tinto's share of the Oyu Tolgoi operation will increase to 66%.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 1.55% to US$1,954.40 an ounce. This follows a rise in Treasury yields amid rate hike optimism.

Shares going ex-div

A number of ASX 200 shares are going ex-dividend this morning and could trade lower on Tuesday. This includes media giant News Corp (ASX: NWS), copper miner Sandfire Resources Ltd (ASX: SFR), and telco TPG Telecom Ltd (ASX: TPG).

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 recommended TPG Telecom Limited. 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

Two excited woman pointing out a bargain opportunity on a laptop.

2 great value ASX shares I want to buy

These stocks are high on my watchlist.

Read more »

Broker looking at the share price.
Share Market News

5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market today.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Broker Notes

Down 16% in 6 weeks: Is this ASX 200 share a bargain buy?

Bell Potter has given its verdict on this beaten down stock.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX 200 enjoyed a strong start to the trading week today.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

1 ASX 200 dividend stock down 20% to buy right now

This beaten-up ASX share could be a top pick for dividends and stability.

Read more »

Man sitting in a plane looking through a window and working on a laptop.

2 cheap ASX 200 shares I'd buy in May

I think these stocks are too cheap to ignore.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

These shares are starting the week strongly. But why?

Read more »