On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose ever so slightly to 7,065.6 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market looks set to trade lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones fall 0.35%, the S&P 500 drop 0.5%, and the Nasdaq tumble 1% lower.
Oil prices rise
Energy producers such as Beach Energy Ltd(ASX: BPT) and Woodside Petroleum Limited(ASX: WPL) could push higher today after oil prices climbed again. According to Bloomberg, the WTI crude oil price is up 0.5% to US$63.43 a barrel and the Brent crude oil price has risen 0.5% to US$67.11 a barrel. Weakness in the US dollar was supportive of oil prices
Iluka rated as a buy
The Iluka Resources Limited(ASX: ILU) share price is in the buy zone according to Goldman Sachs. The broker has put a buy rating and $8.30 price target on the mineral sands producer’s shares, which implies potential upside of almost 13%. Goldman likes Iluka due to its compelling mineral sands and rare earth growth potential, the Zircon market entering a deficit this year, and its attractive valuation.
Gold price falls
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,770.70 an ounce. Rising bond yields knocked the precious metal off its seven-week high.
Tech shares on watch
Afterpay Ltd(ASX: APT) and Appen Ltd(ASX: APX) shares could come under pressure today after a pullback in US tech stocks overnight. The Nasdaq index fell 1% on Monday after bond yields widened. As the local tech sector tends to follow the Nasdaq’s lead, this doesn’t bode well for Tuesday’s session.
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