On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose 0.15% to 8,679.7 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
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ASX 200 to edge higher
The Australian share market looks set to edge higher on Tuesday despite a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points higher. On Wall Street, the Dow Jones fell 0.65%, the S&P 500 dropped 0.75%, and the Nasdaq tumbled 0.9%.
RBA meeting
The Reserve Bank of Australia is meeting on Tuesday and is largely expected to increase the cash rate. According to the latest ASX 30 day interbank cash rate futures contract, the market is pricing in a 90% probability of an interest rate increase to 4.60% at today's meeting. Futures contracts are also predicting a rise to 5% by the middle of next year.
Oil prices rise
ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent session on Tuesday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$93.29 a barrel and the Brent crude oil price is up 1.8% to US$106.18 a barrel. This was despite reports that Saudi Arabia's pipeline is ramping back up.
Buy Minerals 260 shares
Minerals 260 Ltd (ASX: MI6) shares have risen 250% in just 12 months. The good news is that Bell Potter believes the run can continue. This morning, the broker has retained its buy rating on the gold developer's shares with an improved price target of $1.45. It said: "MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through discovery success, project advancement and de-risking as the BGP progresses towards production. MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works."
Gold price sinks
ASX 200 gold shares such as Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a poor session after the gold price sank overnight. According to CNBC, the gold futures price is down 4% to US$4,148.5 an ounce. This appears to have been driven by a rise in US treasury yields to multi-year highs.
