On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.3% to 6,997.4 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is set to give back Monday's gains following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 22 points or 0.3% lower. In late trade in the United States, the Dow Jones and S&P 500 are flat, and the NASDAQ is 0.1% higher.
Oil prices rise
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a decent session after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$80.92 a barrel and the Brent crude oil price is up 0.4% to US$85.23 a barrel. Saudi and Russian production cuts boosted prices.
Reserve Bank meeting
This afternoon the Reserve Bank of Australia will be meeting to decide on the cash rate. A number of economists believe that the central bank will have to act today in order to tame inflation. However, according to the latest cash rate futures, the market is pricing in a 50% chance of an increase to 4.35%. Expect some movement on the ASX 200 when the Reserve Bank shows its hand.
Gold price falls
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor session after the gold price fell overnight. According to CNBC, the spot gold price is down 0.65% to US$1,986.3 an ounce. Gold eased after investors cautiously turned back to riskier assets.
Westpac rated neutral
The team at Goldman Sachs hasn't seen enough in the Westpac Banking Corp (ASX: WBC) full-year result to upgrade its shares. This morning, the broker has retained its neutral rating with a $22.70 price target. It said: "Trading at book value and a 12-mo forward PER of 12.1x (15 year historic average of 12.6x; ex-dividend adjusted), value is emerging." However, its analysts "stay Neutral ahead of more detail around the costs and expected benefits of [its] technology simplification."
