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On Monday S&P/ASX 200 Index (ASX: XJO) had another disappointing start to the week. The basic index fell by 1.6% to 6469.4 points.
Will the market be able to recover from this on Tuesday? Here are five things to watch out for:
The ASX 200 is expected to bounce back
The Australian share market is expected to recover on Tuesday, despite a rocky start to the week on Wall Street. The ASX 200 is poised to open the day 31 points or 0.5% higher, according to the latest SPI futures. In the US, the Dow Jones was down 1.1%, the S&P 500 was down 1%, and the NASDAQ was down 0.6%. The S&P 500 closed at its lowest level in 2022.
Oil prices are falling again
It could be a tough day for energy stocks in particular Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices fell again overnight. According to BloombergThe price of WTI oil fell by 2.3% to 76.87 US dollars per barrel, and the price of Brent oil fell by 2.3% to 84.18 US dollars per barrel. A strong dollar and fears of a recession put pressure on prices.
Dividends are paid
A number of popular ASX 200 stocks are paying their shareholders their latest dividends on Tuesday. This includes the energy company AGL Energy Limited (ASX: AGL), a supplier of electronic design software Altium Limited Company (ASX: ALU), and the supermarket giant Woolworths Group Ltd (ASX: WOW). The latter pays its shareholders a dividend of 53 cents per share.
Miners on watch
Downed mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIA) will be watching today after their US-listed shares slipped back into the red on Wall Street overnight. This appears to have been driven by a combination of recession fears and weakness in iron ore prices. On the latter, the benchmark iron ore price fell 3.5% to US$96.05 per tonne, according to Metal Bulletin.
The price of gold continues to fall
Gold diggers such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could be in for a tough day after the price of gold continued to fall overnight. According to CNBC, the spot price of gold decreased by 1.4% to 1,632.6 US dollars per ounce. The price of gold is now trading at a two-and-a-half-year low.