On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.35% to 7,334.6 points.
Will the market be able build on this on Tuesday? Here are five things to watch:
ASX 200 expected to edge higher
The Australian share market looks set for a subdued session after a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% higher. In the United States, the Dow Jones was down 0.15%, the S&P 500 edged 0.05% lower, and the NASDAQ fell 0.1%.
Oil prices drop
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.4% to US$75.69 a barrel and the Brent crude oil price is down 1.2% to US$79.34 a barrel. Oil prices tumbled on global economic growth concerns.
RBA meeting
The Reserve Bank of Australia is meeting again this afternoon to decide on the cash rate. The good news for borrowers is that the market is pricing in a zero probability of a rate increase at this meeting based on current cash rate futures. Though, should one come, expect a volatile afternoon of trade on the ASX 200 index.
Gold price falls
It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,988.9 an ounce. A stronger US dollar put pressure on the precious metal.
Graincorp shares upgraded to buy
The Graincorp Ltd (ASX: GNC) share price could have plenty of upside according to analysts at Bell Potter. This morning, the broker has upgraded the grain exporter's shares to a buy rating with an $8.00 price target. It commented: "El Niño events can undermine near term earnings (i.e. FY24e), however, we see the current share price as beginning to reflect value on a through the cycle basis."
