Image Source: Getty Images
On Monday, the S&P/ASX 200 Index (ASX:XJO) started the week on a positive note. The benchmark index rose 0.35% to 6,852.2 points.
Will the market be able to take advantage of this on Tuesday? Here are five things to watch:
ASX 200 expected to rise
The Australian stock market is expected to open the day higher on Tuesday despite a poor start to the week in Europe. According to the latest SPI futures, the ASX 200 is set to open the day up 18 points or 0.25% higher. Wall Street was closed for the Labor Day public holiday, but the Dax fell 2.2%, the CAC fell 1.2% and the FTSE rose 0.1% after the UK named its new Prime Minister.
reserve bank meeting
The Reserve Bank will meet again later today to decide on the cash rate. According to the latest westpac banking corporation (ASX: WBC) Weekly economic report, its analysts expect the central bank to raise the cash rate by 50 basis points to 2.35% today. Westpac notes that “increasing the cash rate by 50 basis points will move the cash rate into the neutral zone.” Given Westpac’s exposure to rising rates, its shares could get a boost at today’s meeting.
Oil prices charge more
It could be a big day for energy producers like beach energy ltd (ASX: BPT) and Santos Ltd. (ASX: STO) after oil prices rose overnight. According to Bloomberg, the price of WTI crude oil rose 2.2% to $88.82 a barrel and the price of Brent crude oil rose 2.4% to $95.23 a barrel. This followed confirmation that OPEC will cut production targets by some 100,000 barrels per day from October.
Telstra received neutral rating
Goldman Sachs has been eyeing the telecom giant Telstra Corporation Ltd. (ASX: TLS) but you haven’t seen enough yet to update your actions. This morning, the broker has maintained its neutral rating and $4.40 price target on Telstra shares. Goldman cautioned that its forecasts assume “industry rationality persists through Q25, which is clearly not guaranteed given the risk of TPG targeting market share and Optus retaliating, or competition increasing as the market matures.” 5G cycle”.
The price of gold is bordering on the downside
gold miners like evolution mining ltd (ASX:EVN) and Resources Regis Limited (ASX:RRL) will be watching after the price of gold fell overnight. According to CNBC, the spot gold price is down 0.1% to $1,721.20 per ounce. Traders were selling gold ahead of possible rate hikes from the US Federal Reserve.
Leave a Reply