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5 things to watch on the ASX 200 on Tuesday

There’s a big day ahead for the ASX 200 index…
The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia. –

On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.45% to 7,206.3 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Tuesday ahead of the key Reserve Bank meeting. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. On Wall Street the Dow Jones edged higher, the S&P 500 rose 0.3%, and the Nasdaq climbed 0.4%.

Reserve Bank meeting

It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. According to the latest Westpac Banking Corp (ASX: WBC) weekly economic report, its team are expecting the central bank to increase the cash rate by 40 basis points from 0.35% to 0.75%. It notes that this “would be fully unwinding the emergency rate cuts we saw in 2020 during the Covid crisis.”

Oil prices edge higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up slightly to US$88 a barrel and the Brent crude oil price has risen 0.1% to US$119.88 a barrel. Oil prices after Saudi Arabia lifted its crude prices for the month of July.

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,844.8 an ounce. A stronger US dollar weighed on the precious metal.

Domino’s rated neutral

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could be a hold according to analysts at Goldman Sachs. This morning the broker has responded to the pizza chain operator’s Asian update by retaining its neutral rating and $89.90 price target. Goldman notes that no outlook changes were announced. It continues to target 2,000 stores in Japan, 400 in Taiwan, and 6,650 globally.

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

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. 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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