ASX 200 poised for rebound as traders eye RBA decision and oil price dip
Analysts expect the ASX 200 to open higher on Tuesday, while the Reserve Bank of Australia is set to consider a rate hike and energy stocks face pressure from falling oil prices.
The S&P/ASX 200 index fell 0.6% to 8,856.5 points on Monday, but futures data suggest a 0.7% rise at the open on Tuesday, indicating a potential rebound. In the United States, the Dow Jones gained 0.6% while the S&P 500 and Nasdaq slipped, reflecting mixed market cues.
The Reserve Bank of Australia is scheduled to meet today to review interest rates. Market pricing shows an 80% chance of a 0.25 percentage-point increase to 4.85%. Westpac chief economist Luci Ellis said, "Inflation is above target, and above what the RBA's August forecasts implied. Some upside risks identified in August have partially materialised, particularly energy prices. The RBA is especially worried that above-target inflation will become embedded in people's expectations and pricing decisions. It will therefore deem that further policy tightening is needed."
Energy shares such as Beach Energy and Santos may face headwinds after oil prices dropped sharply, with WTI crude down 7.6% to US$96.20 a barrel and Brent crude down 8% to US$104.33 a barrel, driven by optimism around US-Iran peace talks.
Morgans maintains an "accumulate" rating on ResMed Inc., setting a price target of A$40. The broker highlighted stronger-than-expected first-quarter results, noting product growth of 9% for devices and 10% for masks, while acknowledging non-recurring gains and ongoing inflation pressures.
Gold prices also rose, adding another factor for investors to monitor.