On Monday the S&P/ASX 200 index started the week deep in the red. The benchmark index crashed 1.3% to 6,923.3 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 edge higher.
The S&P/ASX 200 index looks set to rebound slightly from yesterday's selloff on Tuesday. According to the latest SPI futures, the ASX 200 is poised to rise a few points at the open. This follows a return to form on Wall Street which in late trade sees the Dow Jones up 0.7%, the S&P 500 index trading 0.9% higher, and the Nasdaq index rising 1.3%.
Reserve Bank meeting.
The Reserve Bank of Australia will meet later today to decide on the cash rate. According to the latest cash rate futures, the market has priced in a 28% probability of a cut to 0.5% at today's meeting. However, there is now a 100% probability of a rate cut by May being priced in by the market.
Oil prices crash lower.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could come under a lot of pressure on Tuesday after coronavirus concerns sent oil prices crashing lower. According to Bloomberg, the WTI crude oil price has fallen 3% to US$50.10 a barrel and the Brent crude oil price has dropped 3.9% to US$54.42 a barrel.
Gold price softens.
Improving risk sentiment has put pressure on the gold price and could weigh on gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, the spot gold price tumbled 0.4% to US$1,581.40 an ounce during overnight trade.
BWP Trust result.
The BWP Trust (ASX: BWP) share price will be on watch on Tuesday. The half year results of the Australian listed managed investment scheme which invests in commercial real estate are due to be released this morning. BWP Trust is best known as the landlord to Wesfarmers Ltd (ASX: WES) subsidiary Bunnings Warehouse.
