On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a solid gain. The benchmark index rose 0.6% to 7,246.1 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to edge lower
The Australian share market looks set for a subdued session despite a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 1 point lower. On Wall Street, the Dow Jones was up a fraction, the S&P 500 rose 0.1%, and the NASDAQ climbed 0.2%.
Oil prices fall
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.75% to US$70.11 a barrel and the Brent crude oil price is down 0.65% to US$74.93 a barrel. This was despite Saudi Arabia announcing an extension of its voluntary cuts until August.
RBA meeting
It is the first Tuesday of the month, which means the Reserve Bank of Australia (RBA) will be meeting to discuss the cash rate today. According to the latest cash rate futures, the market is pricing in only a 32% probability of a 0.25% increase in the cash rate to 4.35% at today's meeting. This could lead to a volatile afternoon of trade if the RBA hikes rates.
Gold price edges lower
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower. According to CNBC, the spot gold price is down slightly to US$1,929.1 an ounce. Traders appear undecided about where gold will be heading next given the release of mixed economic data.
Evolution named as a buy
The Evolution Mining share price could be good value according to analysts at Goldman Sachs. This morning, the broker has initiated coverage on the gold miner with a buy rating and $3.80 price target. It said: "With growth options across the portfolio, we see EVN's growth outlook as more diversified and lower risk than some peers."
