On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard and started the week with a small gain. The benchmark index rose 0.15% to 8,894.8 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to fall
The Australian share market looks set to fall on Tuesday following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.15% lower. In late trade in the United States, the Dow Jones is down 0.4%, but the S&P 500 is up 0.25% and the Nasdaq has risen 0.55%.
RBA meeting
The Reserve Bank of Australia is meeting on Tuesday to decide on interest rates. Many economists were expecting the central bank to cut interest rates today before last week's surprise inflation reading. As a result, there is currently only a 7% probability of a cut to 3.35% today according to the ASX 30 Day Interbank Cash Rate Futures.
Oil prices rise
It could be a decent session for ASX 200 energy shares such as Karoon Energy Ltd (ASX: KAR) and Santos Ltd (ASX: STO) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.1% to US$61.04 a barrel and the Brent crude oil price is up 0.2% to US$64.90 a barrel. Oil prices pushed higher on news that OPEC plans to pause its output increase.
Buy DroneShield shares
DroneShield Ltd (ASX: DRO) shares are good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating and $5.30 price target on the counter drone technology company's shares. This implies potential upside of almost 40% from current levels. It said: "We believe DRO has the market leading counter-drone offering and a strengthening competitive advantage owing to its years of experience and large R&D team, focused on detect and defeat capabilities. We expect 2026 will be an inflection point for the global counter-drone industry with countries poised to unleash a wave of spending on soft-kill detect and defeat solutions."
Gold price rises
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 pushed higher overnight. According to CNBC, the gold futures price is up 0.55% to US$4,018.7 an ounce. Traders were buying gold ahead of the release of U.S. private payroll data, which could support an additional Federal Reserve interest rate cut this year.
