On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week strongly. The benchmark index rose 0.85% to 8,862.8 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 rise again
The Australian share market looks set to rise on Tuesday following a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 15 points or 0.2% higher. In the United States, the Dow Jones is up 0.15%, the S&P 500 is 0.25% higher, and the Nasdaq has risen 0.5%.
RBA meeting
The Reserve Bank of Australia will be meeting today to decide on interest rates. Unfortunately for homeowners, the market isn't expecting the central bank to take any action. According to the ASX 30 Day Interbank Cash Rate Futures October 2025 contract, there is only a 4% probability of an interest rate cut to 3.35% at today's meeting. Futures contracts are pointing to the November meeting as the more likely meeting for another rate cut.
Oil prices sink
It could be a poor session for ASX 200 energy shares Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.8% to US$63.21 a barrel and the Brent crude oil price is down 3.5% to US$67.69 a barrel. This was driven by forecasts for global supply growth.
Buy EOS shares
The Electro Optic Systems Holdings Ltd (ASX: EOS) share price could be heading higher despite rising 600% this year. This morning, the broker retained its buy rating on the defence and space company's shares with an improved price target of $11.00 (from $5.70). It said: "EOS is positioned as a market leader in counter-UAS solutions, in particular directed energy, and is fully leveraged to increases in defence budgets globally magnified by higher spending allocations to counter-drone technology. The EU "drone wall" is one such example underscoring the critical need for counter-UAS. We see positive news flow over the next 6 months stemming from counter-UAS and RWS contract awards."
Gold price hits new record high
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Ramelius Resources Ltd (ASX: RMS) could have a good session on Tuesday after the gold price jumped to a fresh record high. According to CNBC, the gold futures price is up 1.3% to US$3,858 an ounce. This reflects expectations for further rate cuts and concerns over a possible US government shutdown.
