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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A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought

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On Monday, the S&P/ASX 200 Index (ASX: XJO) gave back the majority of its morning gains to finish the day a fraction higher. The benchmark index rose slightly to 7,485.2 points.

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

ASX 200 expected to fall

The Australian share market looks set to tumble following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% lower. On Wall Street, the Dow Jones fell 1.2%, the S&P 500 was down 1.7%, and the Nasdaq sank 2.2% higher.

Tech shares on watch

It could be a tough day for the tech sector after Wall Street’s Nasdaq index was sold off overnight. The tech focused index fell 2.2% amid concerns that a three-year high in the benchmark U.S. interest rate would start to slow the economy. This may not bode well for ASX 200 tech shares such as Altium Limited (ASX: ALU) and Xero Limited (ASX: XRO) today. In other tech news, the Bitcoin price sank 8%.

Oil prices sink

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.5% to US$94.78 a barrel and the Brent crude oil price has fallen 3.7% to US$98.94 a barrel. This was driven by fears that China’s COVID lockdowns could hit demand.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.65% to US$1,957.80 an ounce. Demand for safe haven assets increased due to market volatility.

Mineral Resources shares upgraded to buy rating

The Mineral Resources Limited (ASX: MIN) share price could be great value according to analysts at Goldman Sachs. This morning the broker upgraded the mining and mining services company’s shares to a buy rating and lifted its price target by 42% to $70.80. Goldman notes that its upgrade was underpinned by “6 major changes to our MIN volume/growth assumptions (in addition to upgrades to both our lithium and iron ore price forecasts).”

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. owns and has recommended Altium and Xero. The Motley Fool Australia owns and has recommended Xero. 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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