On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index fell 0.15% to 7,481.7 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set to edge higher on Tuesday despite a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 3 points higher. In late trade in the United States, the Dow Jones is down 0.55%, the S&P 500 is down 1%, and the NASDAQ is down 1.6%. Rate hike jitters are weighing on the US market.
Oil prices tumble
Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2% to US$78.09 a barrel and the Brent crude oil price is down 2% to US$84.92 a barrel. Oil prices fell after data showed that Russian exports remain strong.
Core Lithium rated as a sell
The Core Lithium Ltd (ASX: CXO) share price remains overvalued according to analysts at Goldman Sachs. Although the broker was pleased with the progress the lithium developer is making at the Finniss project, it has reiterated its sell rating and 95 cents price target. Goldman said: "DMS construction progressing, but valuation remains well ahead of peers."
Gold price falls
It could be a tough day for gold miners 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 0.4% to US$1,937.5 an ounce. Traders have been selling gold ahead of the US Federal Reserve's rate decision later this week.
Newcrest upgraded
One gold miner that could have a better day is Newcrest Mining Ltd (ASX: NCM). That's because Morgans has upgraded the company's shares to an add rating with a $25.70 price target. It said: "Trailing its smaller gold peers, we see an emerging value proposition on offer in NCM, which benefits from mine diversification, solid margins, and long-life reserves."
