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On Friday, the S & P / ASX 200 Index (ASX: XJO) sold out and plummeted. The benchmark fell 1.25% to 6,932 points.
Will the market be able to recover from this on Tuesday? Here are five things to see:
The ASX 200 is expected to crash
The Australian stock market looks set to start the week in the worst possible way. According to the latest SPI futures, the ASX 200 is about to open a massive 296 points or 4.3% lower on the day. This follows a major weakness on Wall Street on Friday and last night. With respect to the latter, the Dow Jones fell 2.8%, the S&P 500 3.9% and the Nasdaq 4.7%.
The S&P 500 enters the bear market
The Wall Street S&P 500 fell in a bearish market on Monday night after investors continued to panic over a very high inflation reading in the United States. This has been fueled by fears that the US Federal Reserve will be forced into a higher-than-expected rate hike later this week. According to the Wall Street Journal, he has suggested that the Fed will consider raising rates by 0.75%. This has sparked fears of a global recession.
The price of oil goes up a lot
Despite fears of a global recession, oil prices held up and rose overnight. This could be good news for energy producers like Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO). According to Bloomberg, the price of WTI crude oil has risen 0.1% to US $ 120.83 a barrel and the price of Brent crude oil has risen 0.1% to US $ 122.10 a barrel.
The price of gold is falling
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a hard day after the price of gold fell overnight. According to CNBC, the price of spot gold has dropped 2.7% to $ 1,824.3 an ounce. The prospect of higher rates weighed heavily on the safe haven asset.
BHP and miners to sink
BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and other mining stocks are expected to sink deep into the red on Tuesday. This after two consecutive sessions of sharp falls in mining stocks on Wall Street. This has seen both BHP and Rio Tinto lose about 7% of their value during the sessions, with a 4% drop overnight.