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:
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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).
