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) started the week in a subdued but positive fashion. The benchmark index rose 0.1% to 7,412.4 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise today despite a mixed night in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 25 points or 0.35% higher. In late trade on Wall Street, the Dow Jones is down 0.15%, the S&P 500 is up 0.3%, and the Nasdaq is up 0.9%.

Oil prices smashed

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a bad day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 7.9% to US$104.89 a barrel and the Brent crude oil price has fallen 7.9% to US$111.10 a barrel. Lockdowns in Shanghai sparked demand fears.

Premier Investments rated as a sell

The Premier Investments Limited (ASX: PMV) share price could be overvalued according to Goldman Sachs. This morning the broker responded to the Peter Alexander and Smiggle owner’s half year results by reiterating its sell rating with a $24.30 price target. It said: “PMV continues to trade at elevated 1-year forward P/E on an associates adjusted basis (17.4x vs. peer group median of 9.4x).”

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough day after the gold price dropped overnight. According to CNBC, the spot gold price is down 1.4% to US$1,925.90 an ounce. A strong US dollar and higher bond yields put pressure on the safe haven asset..

Dividends being paid

A number of ASX 200 shares will be paying their latest dividends to shareholders this week. On Tuesday, this will include steel manufacturer BlueScope Steel Limited (ASX: BSL) and gold mining giant Northern Star Resources Ltd (ASX: NST).

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 Premier Investments 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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