On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.35% to 6,852.2 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian share market is expected to open the day higher on Tuesday despite a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.25% higher. Wall Street was closed for the Labor Day public holiday, but the Dax fell 2.2%, the CAC dropped 1.2%, and the FTSE rose 0.1% after the UK named its new prime minister.
Reserve Bank meeting
The Reserve Bank is meeting again later today to decide on the cash rate. According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, its analysts are expecting the central bank to raise the cash rate by 50 basis points to 2.35% today. Westpac notes that "raising the cash rate by 50 basis points will move the cash rate into the neutral zone." Given how much exposure Westpac has to rising rates, its shares could be given a boost by today's meeting.
Oil prices charge higher
It could be a great day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.2% to US$88.82 a barrel and the Brent crude oil price has risen 2.4% to US$95.23 a barrel. This followed confirmation that OPEC will cut production targets by about 100,000 barrels per day from October.
Telstra given neutral rating
Goldman Sachs has been looking at telco giant Telstra Corporation Ltd (ASX: TLS) but hasn't yet seen enough to upgrade its shares. This morning the broker has retained its neutral rating and $4.40 price target on the Telstra's shares. Goldman warned that its forecasts assume "industry rationality persists through to T25, which is clearly not guaranteed given the risk of TPG targeting market share & Optus responding, or competition increasing as the 5G cycle matures."
Gold price edges lower
Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$1,721.20 an ounce. Traders were selling gold ahead of potential rate hikes from the US Federal Reserve.
