On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.45% to 7,180.8 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to rise
The Australian share market looks set to rebound on Tuesday following a decent night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% higher. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 0.7%, and the NASDAQ has risen 0.55%.
Treasury Wine named as a buy
The Treasury Wine Estates Ltd (ASX: TWE) share price remains good value according to analysts at Goldman Sachs. This morning, the broker reiterated its buy rating on the wine giant's shares with a $14.70 price target. It said: "We continue to forecast sustainable growth (Sales 7% and EPS 16% CAGR FY22-25e) from penetration and mix growth across Asia, as well as US."
Oil prices rise
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a great day after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$73.12 a barrel and the Brent crude oil price has risen 2.4% to US$77.95 a barrel. Oil prices jumped on supply risks following a major outage in North America.
Mining giants under pressure
BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could come under pressure on Tuesday after the iron ore price pulled back by almost 2% to US$110.25. This appears to have been the catalyst for the two miners dropping approximately 2% on Wall Street overnight.
Gold price falls
Gold shares 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 1.1% to US$1,790.7 an ounce. Nervous traders sold down the gold price ahead of the release of US inflation data and the US Fed meeting.
