The S&P/ASX 200 Index (ASX: XJO) has recovered from a rocky start this morning, currently flat after falling 0.78% to a 3-month low of 7,191 this morning.
This follows a weak overnight performance from Wall Street, with its major indices the Dow Jones Industrial Average, S&P 500 and Nasdaq sliding 1.78%, 1.70% and 2.19% respectively.
The ASX 200 has managed to claw its way back into positive territory, supported by encouraging bounces from the depressed energy and materials sector.
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Resources bump ASX 200 into positive territory
The ASX 200 is holding onto a small gain as the S&P/ASX Energy (INDEXASX: XEJ) and S&P/ASX Materials (INDEXASX: XMJ) bounce a respective 1.60% and 0.93%.
Iron ore bounces after Monday selloff
Today's resilient performance is headlined by iron ore majors BHP Group Ltd (ASX: BHP), Fortescue Metals Group Ltd (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), up between 1.28% and 1.91%.
The bounce-back has defied the overnight performance of iron ore, which plunged to below US$100 a tonne for the first time since July 2020.
Benchmark iron ore prices fell another US$8.98 a tonne or 8.8% to US$92.98 a tonne, according to Fastmarkets.
Smaller iron ore players are also catching bids, with the Mount Gibson Iron Ltd (ASX: MGX) and Champion Iron Ltd (ASX: CIA) share price rallying 7.9% and 4.8% higher respectively.
Gold miners trade higher, but still around March 2020 lows
ASX 200 gold miners have struggled to find upside as spot prices trade at around March 2020 levels.
Despite going nowhere in the past 18 months, gold majors are propping up the ASX 200 materials index on Tuesday, with heavyweights Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NCM) and Evolution Mining Ltd (ASX: EVN) up 1.44%, 1.86% and 1.62% respectively.
Oil shares lift ASX 200, eyes on Fed meeting
The energy sector is struggling to push above recent highs, despite OPEC forecasting oil demand will exceed pre-pandemic levels in 2022.
At the time of writing, ASX 200 oil and gas players are edging higher with Woodside Petroleum Limited (ASX: WPL) up 2.04% to $21.00, Santos Ltd (ASX: STO) up 0.65% to $6.16 and Oil Search Ltd (ASX: OSH) adding 0.67% to $3.74.
Oil and gas investors should pay attention to the US Federal Reserve Open Market Committee meeting taking place over 21-22 September.
According to S&P Global, "Fed Chairman Jerome Powell signalled last month that it would be appropriate for the tapering to occur by the end of this year, which would buoy interest rates and strengthen the US dollar, putting downward pressure on energy prices."
