On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.2% to 8,537.1 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market is expected to return to form on Tuesday following a positive start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 18 points or 0.2% higher. Wall Street was closed for the President's Day holiday but the FTSE was up 0.4% and the DAX was up 1.25%.
RBA meeting
Today is a big day for homeowners with the Reserve Bank of Australia (RBA) meeting for the first time this year to decide on the cash rate. According to the latest ASX 30 Day Interbank Cash Rate Futures February 2025 contract, the market is pricing in a 90% probability of a 25 basis points decrease to 4.1% at this afternoon's update. The market has then priced in two further cuts this year, so investors may want to pay attention to what the central bank says in its outlook statement.
Oil prices rise
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$71.33 a barrel and the Brent crude oil price is up 0.7% to US$75.26 a barrel. Oil prices have rebounded after recent weakness caused by optimism over a Ukraine-Russia peace deal.
BHP half year results
All eyes will be on BHP Group Ltd (ASX: BHP) shares when the mining giant releases its half year results. The consensus estimate is for underlying EBITDA of US$12.35 billion for the six months. The includes copper EBITDA of US$4.896 billion and iron ore EBITDA of US$7.282 billion. A fully franked interim dividend of 49 US cents is expected by the market. Also releasing their results this morning are ASX 200 shares Hub24 Ltd (ASX: HUB), Mineral Resources Ltd (ASX: MIN), and Seek Ltd (ASX: SEK).
Gold price pushes higher
ASX 200 gold miners such as Bellevue Gold Ltd (ASX: BGL) and Regis Resources Limited (ASX: RRL) could have a decent session on Tuesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.3% to US$2,910.2 an ounce. This was driven by a softer US dollar.
