On Monday, the S&P/ASX 200 Index (ASX: XJO) was back on form and started the week with a strong gain. The benchmark index rose 1.2% to 7,149.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to sink
The Australian share market looks set to give back the majority of yesterday's gains on Tuesday. This follows a volatile start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1.05% lower. In late trade, the Dow Jones is flat, the S&P 500 has fallen 0.65%, and the Nasdaq is down 1.8%. The Dow was up as much as 450 points at one stage before paring its gains.
Oil prices fall heavily
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough day after oil prices sank. According to Bloomberg, the WTI crude oil price is down 7.3% to US$101.42 a barrel and the Brent crude oil price has fallen 6.7% to US$105.14 a barrel. This follows talks between Russia and Ukraine, as well as new COVID lockdowns in China.
Rio Tinto acquisition
The Rio Tinto Limited (ASX: RIO) share price will be on watch today after it announced a non-binding proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill that it doesn't already own. The mining giant has made an all-cash offer of ~US$2.7bn. If the deal completes, Rio Tinto's share of the Oyu Tolgoi operation will increase to 66%.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price tumbled lower overnight. According to CNBC, the spot gold price is down 1.55% to US$1,954.40 an ounce. This follows a rise in Treasury yields amid rate hike optimism.
Shares going ex-div
A number of ASX 200 shares are going ex-dividend this morning and could trade lower on Tuesday. This includes media giant News Corp (ASX: NWS), copper miner Sandfire Resources Ltd (ASX: SFR), and telco TPG Telecom Ltd (ASX: TPG).
