On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a big gain. The benchmark index rose 1% to 7,216.3 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to tumble
The Australian share market looks set to tumble this morning following a poor start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 42 points or 0.6% lower. On Wall Street, the Dow Jones fell 0.6%, the S&P 500 dropped 0.2%, and the NASDAQ edged 0.1% lower.
Oil prices edge higher
Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a reasonably decent session after oil prices edged higher. According to Bloomberg, the WTI crude oil price is up 0.2% to US$71.87 a barrel and the Brent crude oil price is up 0.4% to US$76.42 a barrel. News that Saudi Arabia plans to cut production boosted prices.
RBA meeting
It is the first Tuesday of the month, so that means the Reserve Bank of Australia (RBA) will be meeting to discuss the cash rate. According to the latest cash rate futures, the market is pricing in a 33% probability of a 0.25% increase in the cash rate to 4.1% at today's meeting. This could mean a volatile afternoon of trade if the RBA does hike rates later today.
Gold price rises
Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$1,977.5 an ounce. Optimism that US rate hikes could pause boosted the precious metal.
Bega Cheese named as a buy
The Bega Cheese Ltd (ASX: BGA) share price could be in the buy zone according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating with a $4.10 price target. Bell Potter has been looking at the impact of farmgate agreements across all geographies. The end result is an expectation for a significant jump in earnings in FY 2024. The broker expects Bega Cheese's EBITDA to go from an estimated $159.2 million in FY 2023 to $200.3 million the following year.
