On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.55% to 8,164.6 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to fall
The Australian share market is expected to give back yesterday's gains on Tuesday following a poor start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 50 points or 0.6% lower. In late trade on Wall Street, the Dow Jones is down 0.65%, the S&P 500 is down 0.3%, and the Nasdaq is down 0.3%.
Reserve Bank meeting
The Reserve Bank of Australia (RBA) will be meeting today to decide on the cash rate. Unfortunately for borrowers, the market is pricing in next to zero probability of a rate cut at today's main event. However, should one come out of the blue, it would likely give ASX 200 shares a big lift. At present, the market is expecting the central bank to leave rates on hold until next year. It may be worth looking out for any hints in the RBA's statement in respect to how the battle with inflation is going.
Oil prices charge higher
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.6% to US$71.29 a barrel and the Brent crude oil price is up 2.4% to US$74.85 a barrel. This was driven by news that OPEC plans to delay its output hike.
Mineral Resources named as a buy
Bell Potter thinks investors should be buying the dip when it comes to Mineral Resources Ltd (ASX: MIN) shares. The mining and mining services company's shares were sold off on Monday after it announced the exit of its CEO following an investigation. Bell Potter has reaffirmed its buy rating and $61.50 price target. It said: "We continue to base our investment view on the fundamentals of MIN's business. Looking forward 12-months, we think the proposed changes will be complete, or near complete, and MIN will continue to be an attractive investment, and accordingly we maintain our buy recommendation."
Gold price falls
ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a subdued session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.25% to US$2,742.1 an ounce. A stronger US dollar appears to have put pressure on the precious metal.
