On Monday the S&P/ASX 200 index started the week on a subdued note. The benchmark index fell 0.65% to 6,653 points.
Will the market be able to bounce back on Tuesday? Here are five things to watch:
ASX expected slide.
The Australian share market looks set to continue its poor run on Tuesday. According to the latest SPI futures, the ASX 200 index is poised to open the day 0.1% or 5 points lower this morning. This is despite a reasonably positive start to the week on Wall Street which saw the Dow Jones rise 0.1%, the S&P 500 edge higher, and the Nasdaq push 0.2% higher.
Rio Tinto update.
All eyes will be on the Rio Tinto Limited (ASX: RIO) share price this morning when it releases its second quarter update. According to a note out of Goldman Sachs, it has forecast seasonally higher quarter on quarter Pilbara iron ore production (+10% to 83.2Mt) and stronger shipments (+18% to 81.6Mt). It also expects a recovery in Robe Valley shipments and increased Yandi fines.
Oil prices tumble.
Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under pressure today after oil prices tumbled lower overnight. According to Bloomberg, the WTI crude oil price fell 1.5% to US$59.31 a barrel and the Brent crude oil price dropped 0.75% to US$66.22 a barrel. Soft economic data out of China appears to be behind this decline.
Gold price higher.
Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Tuesday after the gold price pushed higher overnight. According to CNBC, the spot gold price increased 0.25% to US$1,412.20 an ounce.
Oil Search second quarter update.
The Oil Search Limited (ASX: OSH) share price could be on the move on Tuesday when it releases it second quarter update. Its shares have underperformed many of its sector peers this year, so shareholders will no doubt be hoping for a strong update to give its shares a much-needed boost.
