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5 things to watch on the ASX 200 on Tuesday

On Monday the S&P/ASX 200 Index (ASX: XJO) overcame a weak start to the day to record a very strong gain. The benchmark index climbed 1.3% to 5,819.2 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 to push higher.

The ASX 200 looks set to continue its positive form on Tuesday. According to the latest SPI futures, the benchmark index is poised to rise 11 points or 0.2% at the open. This follows a good start to the week on Wall Street. The Dow Jones rose 0.35%, the S&P 500 climbed 0.4%, and the Nasdaq index pushed 0.65% higher.

Reserve Bank meeting.

This afternoon the Reserve Bank will hold its latest monetary policy meeting. According to the latest cash rate futures, the market is currently pricing in a 45% probability of a rate cut to zero. On Friday the economics team at Westpac Banking Corp (ASX: WBC) revealed that they are not ruling out negative interest rates in Australia.

Oil prices rise.

Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could be on the rise today after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price rose 0.2% to US$35.56 a barrel and the Brent crude oil price pushed 1.9% higher to US$38.55 a barrel.

Gold price softens.

Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the spot gold price softened overnight. According to CNBC, the spot gold price fell 0.1% to US$1,750.00 an ounce. Demand for safe haven assets weakened as equities stormed higher despite U.S. protests and U.S.-China tensions.

Afterpay on watch.

The Afterpay Ltd (ASX: APT) share price will be one to watch today when rival Zip Co Ltd (ASX: Z1P) releases an acquisition and capital raising update. There is speculation that Zip Co has identified a business to acquire that will allow it to expand into the United States and take on Afterpay in this key market.

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James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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