On Monday the S&P/ASX 200 Index (ASX: XJO) gave back its early gains and started the week with a decline. The benchmark index fell 0.2% to 6,060.5 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to sink lower.
It looks set to be a disappointing start to the month for the ASX 200 on Tuesday. According to the latest SPI futures, the benchmark index is expected to fall 61 points or 1% lower this morning. This follows a mixed start to the week on Wall Street, which saw the Dow Jones fall 0.8%, the S&P 500 drop 0.2%, and the Nasdaq push 0.7% higher.
Reserve Bank meeting.
The Reserve Bank of Australia will be meeting this afternoon to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 56% probability of a rate cut to zero. While this means a cut is possible, it looks unlikely to be the case. The Westpac Banking Corp (ASX: WBC) economics team expects the cash rate to stay on hold at 0.25%.
Oil prices fall.
Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.4% to US$42.80 a barrel and the Brent crude oil price has fallen 0.55% to US$45.56 a barrel.
Gold price edges higher.
The shares of Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) will be on watch today after the spot gold price edged higher. According to CNBC, the spot gold price rose slightly to US$1,975.60 an ounce. However, that wasn’t enough to stop the precious metal from recording its first monthly decline in five months.
Shares trading ex-dividend.
This morning a number of ASX 200 shares are due to trade ex-dividend and could drop lower. These include tech share Appen Ltd (ASX: APX), diversified retailer Super Retail Group Ltd (ASX: SUL), conglomerate Woolworths Group Ltd (ASX: WOW), and engineering company Worley Ltd (ASX: WOR).
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of Appen Ltd and Woolworths Limited. 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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