On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week deep in the red. The benchmark index sank 0.95% to 7,625.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to fall again
The Australian share market is expected to fall again on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.4% lower. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is down 0.25%, and the NASDAQ is 0.2% lower.
RBA meeting
All eyes will be on the Reserve Bank of Australia (RBA) today when the central bank holds its cash rate meeting. While the RBA is not expected to cut rates at this meeting, the market is likely to be looking for confirmation that the rate hike cycle is now over.
Oil prices charge higher
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a great session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.22 a barrel and the Brent crude oil price is up 1.25% to US$78.30 a barrel. Middle East tensions gave prices a boost.
Fletcher Building remains a buy
Goldman Sachs believes that investors should be snapping up Fletcher Building Ltd (ASX: FBU) shares following yesterday's tumble. In response to its update, the broker has retained its buy rating with a trimmed $4.65 price target. Goldman said: "[W]e believe cyclical risks are more than adequately reflected in FBU's current valuation."
Gold price falls
ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued session after the gold price fell overnight. According to CNBC, the spot gold price is down 0.55% to US$2,042.6 an ounce. Higher bond yields put pressure on the precious metal.
