On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a disappointing fashion. The benchmark index fell 0.7% to close the day at 8,152.9 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
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ASX 200 expected to rebound
The Australian share market is expected to rebound on Tuesday following a positive start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.2% higher. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 climbed 0.3%, and the Nasdaq edged 0.15% higher.
RBA meeting
The Reserve Bank of Australia will be holding its latest cash rate meeting on Tuesday. Unfortunately for borrowers, the market doesn't believe the central bank will follow the lead of the US Federal Reserve by cutting interest rates today. The ASX 30 Day Interbank Cash Rate Futures contract was last trading at 95.665, indicating a 10% expectation of an interest rate decrease to 4.1% at today's meeting. The first cut is expected to take place early next year.
Oil prices fall
It could be a subdued session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down 0.6% to US$70.57 a barrel and the Brent crude oil price is down 0.55% to US$74.08 a barrel. Oil prices fell in response to weak euro zone business activity.
REA Group named as a buy
REA Group Ltd (ASX: REA) shares are good value according to analysts at Bell Potter. In response to news that the real estate listings company has made another takeover offer for Rightmove (LSE: RMV), the broker has retained its buy rating and $226.00 price target. It said: "We estimate the Further Improved Proposal would be around 10% EPS accretive in FY26 (5% net synergies), which decreases to around 6% at a 45% premium."
Gold price rises
ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price edged higher again overnight. According to CNBC, the gold futures price is up 0.2% to US$2,651 an ounce. Gold hit a record high after traders continued to bid the precious metal higher following US rate cuts.
