On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose slightly to 7,410.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 expected to jump
Australian investors are likely to be smiling like Matildas supporters today with the market set to push higher following a positive start to the week in the US. According to the latest SPI futures, the ASX 200 is poised to open the day 23 points or 0.3% higher. On Wall Street, the Dow Jones was up 0.3%, the S&P 500 rose 0.15%, and the NASDAQ climbed 0.2%.
Oil prices climb
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a positive session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.6% to US$81.85 a barrel and the Brent crude oil price is up 0.7% to US$85.56 a barrel. Oil prices hit a multi-month high on tightening supply.
RBA meeting
It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting to discuss the cash rate today. The market thinks there's only a 14% probability of an increase to 4.35% at today's meeting. However, the economics team at Westpac Banking Corp (ASX: WBC) believe the central bank will make a move. It is worth noting that it correctly called a hike in May when the market had ruled it out.
Gold price rises
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.2% to US$2,004.1 an ounce. Traders have been buying gold on the belief that the rate hike cycle is nearing its end.
REA named as a buy
Rea Group Ltd (ASX: REA) shares could be in the buy zone according to Goldman Sachs. This morning, the broker has retained its conviction buy rating on the property listings company with an improved price target of $177.00. It said: "The key reason for our positive view on REA is its ability to continue to deliver strong yield growth, and we believe there is material upside potential from price, depth and new products."
