5 things to watch on the ASX 200 on Tuesday

The ASX 200 looks set to have a day to forget…

| More on:
A man holds his head in his hands, despairing at the bad result he's reading on his computer.

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 Friday, the S&P/ASX 200 Index (ASX: XJO) was sold off and sank notably lower. The benchmark index fell 1.25% to 6,932 points.

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

ASX 200 expected to crash

The Australian share market looks set to start the week in the worst possible fashion. According to the latest SPI futures, the ASX 200 is poised to open the day a massive 296 points or 4.3% lower. This follows significant weakness on Wall Street on Friday and last night. In respect to the latter, the Dow Jones dropped 2.8%, the S&P 500 fell 3.9%, and the Nasdaq sank 4.7%.

S&P 500 enters bear market

Wall Street’s S&P 500 fell into a bear market on Monday night after investors continued to panic over a sky high inflation reading in the United States. This has been driven by fears that the US Federal Reserve will be forced into a larger than expected rate hike later this week. According to the Wall Street Journal, it has suggested that the Fed will consider raising rates by 0.75%. This has sparked fears of a global recession.

Oil prices edge higher

Despite fears of a global recessions, oil prices held up and edged higher overnight. This could be good news for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO). According to Bloomberg, the WTI crude oil price is up 0.1% to US$120.83 a barrel and the Brent crude oil price has risen 0.1% to US$122.10 a barrel.

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 overnight. According to CNBC, the spot gold price is down 2.7% to US$1,824.3 an ounce. The prospect of higher rates weighed heavily on the safe haven asset.

BHP and miners to sink

BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and other mining shares are expected to sink deep into the red on Tuesday. This follows two consecutive sessions of heavy declines for mining shares on Wall Street. This has seen both BHP and Rio Tinto lose approximately 7% of their value over the sessions, with 4% declines overnight.

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 Scott Phillips.

More on Share Market News

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Market News

3 ASX All Ordinaries shares rocking new 52-week highs on Wednesday

Which All Ords shares have recorded new 12-month highs today?

Read more »

share price high, all time record, record share price, highest, price rise, increase, up,
Share Market News

Here are the top 10 ASX 200 shares today

These 10 ASX 200 shares outperformed all others on Wednesday.

Read more »

a group of three people carry a large block to line it up in ascending order with two other blocks nearby.
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Wednesday

Our most traded ASX 200 share today is up 10%.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Share Market News

ASX investors are still feeling confident. Here’s why

ASX investors are still confident in the markets. Here's why...

Read more »

a man in a business shirt, tie and suit holds a mobile phone to his ear while he drinks a large glass of milk.
Share Market News

A2 Milk share price on watch amid FDA update

Here's what the FDA said...

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Share Market News

Is the NAB share price a buy following the bank’s latest update?

Are NAB's shares in the buy zone after its update?

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

Another big day is expected for the ASX 200 on Wednesday...

Read more »

A woman lies back and relaxes in her boat with a big smile on her face as it floats on the rising tide.
Share Market News

Why the Charter Hall Long WALE REIT share price isn’t rocking the boat

It's steady as she goes for this ASX real estate investment trust.

Read more »