On Monday the S&P/ASX 200 index started the week with a disappointing 1.2% decline to 6,320.5 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX futures pointing higher.
The Australian share market looks set to bounce back on Tuesday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 index is poised to open 13 points or 0.2% higher this morning. Over in the United States the Dow Jones was flat, the S&P 500 was down 0.3%, and the Nasdaq tumbled 1.6% lower.
Reserve Bank meeting.
The Reserve Bank of Australia has a big decision to make this afternoon when it meets to discuss the cash rate. According to the ASX 30 Day Interbank Cash Rate Futures, there is currently a 100% probability of a rate cut being priced in by the market. If the central bank doesn't cut rates then it could cause a spot of volatility in the share market and Australian dollar.
Tech shares on watch.
Afterpay Touch Group Ltd (ASX: APT), Altium Limited (ASX: ALU), and the rest of the Australian tech sector could come under pressure today after their U.S. counterparts sank lower. The Nasdaq index dropped 1.6% into correction territory.
Oil prices lower again.
It looks set to be another disappointing day of trade for Australian energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO). According to Bloomberg, the WTI crude oil price continued its slide and is down 1.3% to US$52.80 a barrel and the Brent crude oil price fell 2% to US$60.73 a barrel.
Gold price storms higher again.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) were amongst the best performers on the Australian share market on Monday. On Tuesday they look set to repeat this after the gold price stormed to a three-month high thanks to safe-haven buying. According to CNBC, the spot gold price rose a further 1.4% to US$1,329.90 an ounce.
