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 1.7% to 7,843.4 points.
Will the market be able to bounce back from this on Tuesday? Here are five things to watch:
ASX 200 expected to rebound
The Australian share market is expected to rise on Tuesday following a mixed session in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 82 points or 1% higher. In late trade on Wall Street, the Dow Jones is up 1% and the S&P 500 has risen 0.4%, but the Nasdaq is 0.3% lower.
RBA meeting
The Reserve Bank of Australia is holding its latest cash rate meeting on Tuesday and will make a decision on whether to cut interest rates for a second successive meeting. Unfortunately for borrowers, the RBA Rate Indicator shows that there is just a 10% probability of a cut to 3.85% at today's meeting. Westpac Banking Corp (ASX: WBC) agrees. Its chief economist, Luci Ellis, said: "While we still expect a rate cut in May, back–to– back cuts in February and April were never on the table. The RBA was too hawkish in its rhetoric last month for that, and the Board made clear that last month's cut did not foreshadow more. Cutting again at the April meeting would therefore be damaging to its credibility."
Oil prices charge higher
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 3.1% to US$71.50 a barrel and the Brent crude oil price is up 1.5% to US$74.74 a barrel. Russian and Iranian supply concerns gave prices a lift.
Buy Light & Wonder shares
The Light & Wonder Inc. (ASX: LNW) share price is great value according to analysts at Bell Potter. Although the gaming technology company has been hit with another lawsuit, the broker remains very positive and has reaffirmed its buy rating with a trimmed price target of $197.00. It said: "We believe the market is again pricing in a worst-case scenario regarding the ALL legal matters. We expect LNW's cross-platform strategy and leading scale will produce a portfolio of high-performing games in both land-based and digital markets."
Gold price jumps
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price raced higher overnight. According to CNBC, the gold futures price is up 1.3% to US$3,155.7 an ounce. Traders were buying gold ahead of the launch of US tariffs.
The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.
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 Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. 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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