On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.6% to 8,856.5 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
Image source: Getty Images
ASX 200 expected to rebound
The Australian share market looks set for a good session on Tuesday despite a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 64 points or 0.7% higher. On Wall Street, the Dow Jones rose 0.6%, but the S&P 500 dropped 0.3% and the Nasdaq fell 0.75%.
RBA meeting
The Reserve Bank of Australia (RBA) will be meeting today to discuss interest rates. Unfortunately for borrowers, based on the latest RBA Rate Tracker, the market believes there is an 80% probability of a 0.25% increase to 4.85% today. The team at Westpac Banking Corp (ASX: WBC) agrees. In its latest Westpac Weekly economic report, chief economist, Luci Ellis, said: "Inflation is above target, and above what the RBA's August forecasts implied. Some upside risks identified in August have partially materialised, particularly energy prices. The RBA is especially worried that above-target inflation will become embedded in people's expectations and pricing decisions. It will therefore deem that further policy tightening is needed."
Oil prices crash
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a tough session after oil prices crashed overnight. According to Bloomberg, the WTI crude oil price is down 7.6% to US$96.20 a barrel and the Brent crude oil price is down 8% to US$104.33 a barrel. This was driven by US-Iran peace talk optimism.
Accumulate ResMed shares
Morgans remains positive on ResMed Inc. (ASX: RMD) following its quarterly update. In response to the release, the broker has put an accumulate rating on its shares with a $40.00 price target. It said: "1Q27 was stronger than expected, supported by GM expansion and healthy underlying demand, but contained multiple non-recurring gains. Underlying product growth remains encouraging, with devices 9% and masks 10%, although ROW device growth benefited from France fleet renewals and US sales from strong demand ahead of price increases and volume-based rebates. Despite the strong start, FY27 guidance was reiterated, with management pointing to ongoing inflation, higher 2Q costs and moderating ROW device growth. We make modest adjustments to FY27-29 forecasts, with our target moving to A$40. Given the strong stock recovery and TSR <20%, we move to ACCUMULATE."
Gold price rises
ASX 200 gold shares including Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a good session on Tuesday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.35% to US$3,951.4 an ounce. Softer oil prices gave the precious metal a boost.
