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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in fine form. The benchmark index rose 0.7% to 6,993 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fail
The Australian share market is expected to open the day lower 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 19 points or 0.3% lower. On Wall Street the Dow Jones fell 0.15%, the S&P 500 dropped 0.3%, and the NASDAQ was down 0.2%.
The Reserve Bank of Australia is meeting again today to decide on the cash rate. According to the latest cash rate futures, the market sees a 67% probability of the central bank raising the cash rate by 0.65% to 2%. Though, another 0.5% rise to 1.85% appears to be the most likely outcome at this afternoon’s meeting according to the Westpac Banking Corp. (ASX: WBC) economic team.
Oil price sink
It could be a difficult day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices sank deep into the red on Monday night. According to Bloomberg, the WTI crude oil price is down 5% to US$93.66 a barrel and the Brent crude oil price has fallen 4.1% to US$99.72 a barrel. Traders were selling oil following concerns about weak Chinese factory data.
Credit Corp results
the Credit Corp Group Limited (ASX: CCP) share price will be on watch on Tuesday when the debt collector kicks off earnings season. According to a note out of Morgans, its analysts are expecting the company to report a full year net profit after tax of $96.2 million. This will be the top end of Credit Corp’s guidance range from $92 million to $97 million. Looking ahead, the broker is expecting management to guide to a net profit of $94 million to $104 million for FY 2023.
Gold price higher
gold miners Evolution Mining Ltd. (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent day after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.35% to US$1,788 an ounce. A softer US dollar and weak Chinese economic data increased demand for the precious metal.