5 things to watch on the ASX 200 on Tuesday

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

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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.

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