On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in the red. The benchmark index fell 1.2% to 7,120.7 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 fall again
The Australian share market looks set to continue to sink on Tuesday after another selloff on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 97 points or 1.35% lower. On Wall Street, the Dow Jones fell 2%, the S&P 500 dropped 3.2%, and the Nasdaq crashed 4.3%.
Tech shares under pressure
Things look set to go from bad to worse for Australia's tech sector on Tuesday. The likes of Appen Ltd (ASX: APX) and Block Inc (ASX: SQ2) are likely to fall deep into the red following a selloff in the US tech sector. Block's US listed shares crashed a sizeable 13% during overnight trade on the NYSE.
Oil prices sink
Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 6.4% to US$102.74 a barrel and the Brent crude oil price has fallen 6.2% to US$105.46 a barrel. Traders were selling oil amid concerns over China's lockdowns.
Gold price tumbles
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a bad day after the gold price sank overnight despite the market selloff. According to CNBC, the spot gold price is down 1.6% to US$1,851.5 an ounce. The precious metal was sold off after US bond yields rose
Wesfarmers rated as a sell
The Wesfarmers Ltd (ASX: WES) share price could be heading lower from here according to analysts at Goldman Sachs. This morning the broker reiterated its sell rating with a $38.60 price target on the conglomerate's shares. This implies potential downside of over 20% for investors. Goldman expects Wesfarmers to be impacted from softening consumer demand due to broad-based inflation and higher housing costs.
