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5 things to watch on the ASX 200 on Tuesday

On Monday the S&P/ASX 200 index started the week on a disappointing note, dropping 0.4% to 6,579.4 points.

Will the local share market be able to bounce back on Tuesday? Here are five things to watch:

ASX 200 futures pointing lower.

The Australian share market looks set to edge ever so slightly lower at the open on Tuesday. According to the latest SPI futures, the ASX 200 index is poised to open the day 2 points lower this morning. Wall Street was closed for the Labor Day holiday, but in Europe the FTSE climbed 1% on Brexit optimism and the DAX rose 0.1%.

Reserve Bank meeting.

This afternoon the Reserve Bank of Australia will meet to discuss the cash rate once again. Almost all economists expect the central bank to keep the cash rate on hold at 1%, so all eyes will be on its commentary. According to the latest cash rate futures, the market is pricing in a cut to 0.75% at October’s meeting and then a further cut to 0.5% in February or March.    

Oil prices lower.

It looks set to be a weak day of trade for Beach Energy Ltd (ASX: BPT), Woodside Petroleum Limited (ASX: WPL), and the rest of Australia’s energy producers after oil prices dropped lower. According to Bloomberg, the WTI crude oil price dropped 0.6% to US$54.77 a barrel and the Brent crude oil price fell 1% to US$58.66 a barrel.

Gold price higher.

Australian gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise on Tuesday after the gold price pushed higher after trade tariffs came into place. According to CNBC, the spot gold price has risen 0.55% to US$1,538.50 an ounce.

Shares going ex-dividend.

Another group of shares are scheduled to go ex-dividend this morning and could trade lower. These include design software provider Altium Limited (ASX: ALU), integrated services company Downer EDI Limited (ASX: DOW), energy producer Oil Search Limited (ASX: OSH), and retail giant Woolworths Group Ltd (ASX: WOW).

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. 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 Scott Phillips.

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