On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a disappointing fashion. The benchmark index fell 0.7% to 6,014.6 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch
ASX 200 expected to rebound.
It looks set to be a more positive day of trade for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is expected to open 29 points or 0.5% higher this morning. This follows a very positive start to the week on Wall Street, which saw the Dow Jones rise 1.8%, the S&P 500 climb 1.6%, and the Nasdaq jump 2.2%. Tech shares played a key role in driving these indices higher.
Reserve Bank meeting.
This afternoon the Reserve Bank of Australia will hold its monetary policy meeting and decide whether to cut the cash rate down to zero. According to the latest cash rate futures, the market is pricing in a 62% probability of a rate cut today. This means that a cut is far from certain, but is definitely in play. A rate cut would arguably be a negative for Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four.
Oil prices mixed.
Energy producers including Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a mixed night of trade for oil prices. According to Bloomberg, the WTI crude oil price is flat at US$40.65 a barrel and the Brent crude oil price is up 0.6% to US$4307 a barrel. Positive supply data was supporting oil prices.
Gold price rises.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise after the gold price strengthened. According to CNBC, the spot gold price rose 0.25% to US$1,794.80 an ounce. The gold price climbed higher on the back of surging coronavirus case numbers.
QBE added to conviction buy rating.
The QBE Insurance Group Ltd (ASX: QBE) share price could be on the rise on Tuesday after Goldman Sachs added the insurance giant to its conviction buy list with an $11.26 price target. The broker believes QBE has two medium term opportunities to create value for shareholders. These are upside from putting (potential) excess capital to work and margin expansion from operating leverage.
