On Monday the S&P/ASX 200 Index (ASX: XJO) started the week deep in the red. The benchmark index fell 2.1% to 7,248.2 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to sink again
The Australian share market is expected to sink again on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 98 points or 1.4% lower. This follows a poor start to the week on Wall Street. The Dow Jones fell 1.8%, the S&P 500 sank 1.7%, and the Nasdaq dropped 2.2%.
Iron ore price tumbles further
Mining giants BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) will be on watch after the iron ore price pulled back further. According to Metal Bulletin, the spot iron ore price has fallen 8.8% to US$92.98 per tonne. This follows concerns about demand in China amid fears that property giant Evergrande could collapse.
Oil prices fall
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a tough day after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.7% to US$70.74 a barrel and the Brent crude oil price has fallen 1.4% to US$74.32 a barrel. Concerns about China's economy weighed on prices.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.8% to US$1,765.7 an ounce. The precious metal was boosted by demand for safe haven assets due to the Evergrande-related market selloff.
Dividends being paid
A number of ASX 200 shares will be paying dividends later today to their respective shareholders. This includes mining giant BHP and energy companies Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO). In respect to the former, BHP is rewarding its shareholders with a massive 271.5 cents per share dividend.
