On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week on a very positive note. The benchmark index rose 1.1% to 6,612.6 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to edge lower
The Australian share market appears to be running out of steam and is expected to open the day slightly lower on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 7 points or 0.1% lower. Wall Street was closed for the Independence Day holiday but in Europe the DAX fell 0.3% and the FTSE rose 0.9%. US futures are pointing to declines tonight.
Reserve Bank meeting
The Reserve Bank of Australia is meeting after lunch to decide on the cash rate. Last month the central market shocked the market with its 50 basis points increase to 0.85%. This time around the market is more prepared and currently pricing in a further 50 basis points increase to 1.35%.
Oil prices push higher
It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 2.05% to US$110.66 a barrel and the Brent crude oil price has climbed 2% to US$113.83 a barrel. Supply concerns boosted prices despite fears that a recession is looming.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$1,808.3 an ounce. A softer US dollar boosted the price of the precious metal.
Iron ore price falls
Seaborne iron ore prices fell further on Monday amid soft short term demand and downbeat market sentiment according to Metal Bulletin. This led to the benchmark iron ore price falling 5.6% to US$109.90 a tonne. This could put pressure on the shares of BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) on Tuesday.
