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On Monday, the S & P / ASX 200 Index (ASX: XJO) started the week with a very strong gain. The benchmark rose 1.2% to 6,687.1 points.
Will the market be able to take advantage of this on Tuesday? Here are five things to see:
ASX 200 is expected to drop
The Australian stock market is expected to open the day lower this Tuesday after a bad start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.4% lower. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 fell 0.85% and the NASDAQ fell 0.8%. A late sale removed some strong intraday gains.
Neutral ANZ classification
The shares of Australia and New Zealand Banking Group Ltd (ASX: ANZ) remain with a neutral rating on Goldman Sachs despite their agreement to acquire the banking operations of Suncorp Group Ltd (ASX: SUN). However, with a target price of $ 27.44, Goldman sees a significant increase in ANZ shares. He commented: “While the agreement slightly improves ANZ’s lack of scale in domestic retail / commercial banking, we see that operational risk is high.”
Oil prices jump
It could be a very good day for energy producers like Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the price of WTI crude has risen 4.7% to US $ 102.17 a barrel and the price of Brent crude has risen 4.45% to US $ 105.68 a barrel. Concerns about Russia’s gas supply to Europe raised prices.
BHP Q4 Update
The stock price of BHP Group Ltd (ASX: BHP) will be what to see on Tuesday when the mining giant releases its fourth quarter update. The Big Australian is targeting an annual production of 249Mt to 259Mt of iron ore, 1,570kt to 1,620kt of copper and 38Mt to 41Mt of metallurgical coal. All eyes will be on BHP costs amid difficult operating conditions.
The price of gold goes up
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be pending after the price of gold has risen overnight. According to CNBC, the price of spot gold has risen 0.2% to $ 1,706.7 an ounce. A softer US dollar gave a boost to the precious metal.