On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index fell 1.15% to 6,602.2 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market is expected to open the day higher on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% higher. This is despite Wall Street taking a tumble last night with the Dow Jones dropping 0.5%, the S&P 500 falling 1.15%, and the NASDAQ sinking 2.25%.
J Capital targets Lake Resources
The Lake Resources N.L. (ASX: LKE) share price will be on watch today after short seller J Capital targeted the lithium developer. It commented: "Lake is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine.[…] We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would."
Oil prices fall
It could be a subdued day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.2% to US$103.50 a barrel and the Brent crude oil price has fallen 0.45% to US$106.53 a barrel. Concerns about rising COVID cases in China weighed on prices.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 0.6% to US$1,731.2 an ounce. A strong US dollar pushed gold close to a nine-month low.
Costa given buy rating
The Costa Group Holdings Ltd (ASX: CGC) share price came under pressure on Monday. One leading broker that sees this as a buying opportunity is Goldman Sachs. This morning the broker reiterated its buy rating with a $3.65 price target. It said: "We believe CGC is well positioned to deliver strong earnings growth in CY22/CY23/CY24."
