On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.2% to 7,033.2 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 is set to fall heavily on Tuesday ahead of the Reserve Bank meeting this afternoon. This follows a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 101 points or 1.4% lower. In late trade in the United States, the Dow Jones is down 0.4%, the S&P 500 is 0.25% lower, but the NASDAQ is 0.3% higher.
Oil prices sink
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough session after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 2.4% to US$88.60 a barrel and the Brent crude oil price is down 1.9% to US$90.47 a barrel. A strong US dollar and profit-taking weighed on oil prices.
Miners to fall
It looks set to be a poor session for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) on Tuesday. The miners are both trading almost 2% lower on Wall Street after a pullback in commodity prices.
Gold price tumbles
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor session after the gold price fell again overnight. According to CNBC, the spot gold price is down 1.1% to US$1,846 an ounce. A strong US dollar and higher interest rate expectations weighed on the precious metal.
Liontown rated neutral
Liontown Resources Ltd (ASX: LTR) shares are fully valued according to analysts at Goldman Sachs. This morning the broker has reiterated its neutral rating on the lithium developer. The broker said: " We see LTR trading at a premium to our NAV at 2.1x (peer average ~1.1x) or at a LT spodumene price of ~US$1,650/t (peer average ~US$1,100/t), likely in part on M&A activity, while also having a high lithium price valuation sensitivity."
