ASX 200 set to fall before RBA decision: 12 shares you need to watch today

The local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has risen in each of the last six sessions. Whether that trend continues today or not will largely depend on the outcome of the Reserve Bank’s meeting this afternoon where the board will discuss whether to cut interest rates to 1.5%.

As it stands, the Sydney Futures Exchange is pointing to a 0.4% dip when the market opens.

Here’s a quick recap:

  • FTSE 100 (UK): down 0.45%
  • DAX (Germany): down 0.07%
  • CAC 40 (France): down 0.69%
  • Dow Jones (USA): down 0.15%
  • NASDAQ (USA): up 0.43%

Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS) and other shares offering solid dividend yields will be in focus today.

If the Reserve Bank decides to cut interest rates, expect those shares to rise in price as investors pile in for their solid yields. If interest rates are left on hold, however, I would expect those shares to end the day lower.

Plenty of attention will also be given to shares across the resources sector. Iron ore prices soared following encouraging Chinese data, which bodes well for Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

BHP Billiton Limited (ASX: BHP) will also benefit from a higher iron ore price, but could be weighed down by the plunge in oil prices. Oil is now in a bear market, which could also impact shares of businesses such as Origin Energy Ltd (ASX: ORG) and Santos Ltd (ASX: STO) today.

Meanwhile, BC Iron Limited (ASX: BCI) released its full-year financial results late during yesterday’s session. The iron ore miner reported revenue of $151.3 million and an EBITDA loss of $7.6 million (EBITDA = earnings before interest, tax, depreciation and amortisation). It also said it expects to improve its net cash position going forward.

Media groups NZME LTD FPO NZX (ASX: NZM) and Fairfax New Zealand Limited have filed a cross submission as part of their bid to merge.

Retail group RCG Corporation Ltd (ASX: RCG) has announced a number of management changes, including the appointment of Daniel Agostinelli as Co-CEO. Executive director Michael Cooper will also leave the business in December.

Finally, earnings season will continue to get underway today. Impressively, Resolute Mining Limited (ASX: RSG) reported an NPAT result of $213 million, compared to a loss of $569 million in financial year 2015.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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