On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day in the red. The benchmark index fell 0.95% to7,046.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to sink again
The Australian share market is expected to open the day sharply lower on Tuesday following a disappointing start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 50 points or 0.7% lower. On Wall Street the Dow Jones fell 1.9%, the S&P 500 dropped 2.1%, and the NASDAQ was down 2.55%. Global recession fears sent investors to the exits.
Altium smashes expectations
The Altium Limited (ASX: ALU) share price will be on watch on Tuesday after the electronic design software company's full year results smashed expectations. Altium was guiding to revenue of US$213 million to US$217 million with an EBITDA margin at the lower end of 34% to 36%. Whereas it delivered revenue of US$220.8 million and an EBITDA margin of 36.7%. This led to its profit after tax coming in at US$55.5 million, which was well ahead of consensus estimates.
Oil prices volatile
It could be an interesting day for energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after a very volatile night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.1% to US$90.67 a barrel and the Brent crude oil price is up 0.1% to US$96.82 a barrel. Global recession concerns sent prices deep into the red before OPEC caused a rebound by suggesting that production cuts were a possibility.
Pilbara Minerals results
The Pilbara Minerals Ltd (ASX: PLS) share price will be in focus today when the lithium miner releases its full year results. With lithium prices charging higher in FY 2022, a strong profit result is expected from the miner. Citi, for example, is forecasting EBITDA of $840 million for FY 2022. This is up from just $21.4 million a year earlier.
Gold price falls
It could be a difficult day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.8% to US$1,749.0 an ounce. A strong rally by the US dollar has weighed on the precious metal.
