5 things to watch on the ASX 200 on Tuesday

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week deep in the red. The benchmark index sank 0.95% to 7,625.9 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market is expected to fall again on Tuesday following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 30 points or 0.4% lower. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is down 0.25%, and the NASDAQ is 0.2% lower.

RBA meeting

All eyes will be on the Reserve Bank of Australia (RBA) today when the central bank holds its cash rate meeting. While the RBA is not expected to cut rates at this meeting, the market is likely to be looking for confirmation that the rate hike cycle is now over.

Oil prices charge higher

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a great session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 1.3% to US$73.22 a barrel and the Brent crude oil price is up 1.25% to US$78.30 a barrel. Middle East tensions gave prices a boost.

Fletcher Building remains a buy

Goldman Sachs believes that investors should be snapping up Fletcher Building Ltd (ASX: FBU) shares following yesterday’s tumble. In response to its update, the broker has retained its buy rating with a trimmed $4.65 price target. Goldman said: “[W]e believe cyclical risks are more than adequately reflected in FBU’s current valuation.”

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued session after the gold price fell overnight. According to CNBC, the spot gold price is down 0.55% to US$2,042.6 an ounce. Higher bond yields put pressure on the precious metal.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• History shows 2024 could be a big year for ASX 200 shares. Here are 3 to look at now
• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking
• Stocks on the rocks: Why the ASX 200 is backtracking from record highs today
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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