On Monday the S&P/ASX 200 index started the week on a disappointing note after giving back its gains to end with a decline of 0.4% to 6,688.3 points.
Will the local share market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
It looks set to be a reasonably positive day of trade for the Australian share market. At the time of writing, SPI futures are pointing to a small gain of 7 points or 0.1% at the open. This follows a solid night of trade on Wall Street which saw the Dow Jones rise 0.35%, the S&P 500 push 0.5% higher, and the Nasdaq index climb 0.75%.
Reserve Bank meeting
Australia and New Zealand Banking Group (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four banks will be on watch today when the Reserve Bank meets to decide on the cash rate. According to the latest cash rate futures, there is a 78% probability of a rate cut to 0.75% this afternoon.
Oil prices drop
The likes of Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be on the slide today after oil prices dropped lower overnight. According to Bloomberg, the WTI crude oil price fell 2.8% to US$54.33 a barrel and the Brent crude oil price dropped to US$60.78 a barrel. The catalyst for this was weak Chinese economic data.
TPG Telecom court battle concludes
The TPG Telecom Ltd (ASX: TPM) share price could be on the move today when its court battle with the ACCC over its proposed merger with Vodafone Australia concludes. However, a decision on the merger is not expected to be made by Justice John Middleton for several months.
Gold price sinks
Australian gold miners including Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) will be on watch today after the gold price sank lower. According to CNBC, the spot gold price dropped 1.8% to US$1,479.10 an ounce after the U.S. dollar strengthened.
