On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week positively and recorded a solid gain. The benchmark index rose 0.8% to 7,761 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to fall
The Australian share market is expected to fall on Tuesday after a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 10 points or 0.15% lower. On Wall Street, the Dow Jones was down 0.3%, the S&P 500 was up 0.1%, and the Nasdaq rose 0.55%.
Life360 launches US IPO
The Life360 Inc (ASX: 360) share price will be one to watch today after the location technology company launched its Nasdaq IPO. Life360 estimates it will receive net proceeds from the offering of approximately US$84.4 million. Management advised that the principal purposes of this IPO are to increase its capitalisation and financial flexibility and create a public market for its common stock in the United States. It currently intends to use the net proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures.
Oil prices sink
It could be a very tough session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.8% to US$74.05 a barrel, and the Brent crude oil price is down 3.6% to US$78.18 a barrel. This follows news that OPEC+ plans to phase out its voluntary production cuts.
Iron ore price tumbles
BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) shares could act as a drag on the ASX 200 index on Tuesday. That's because the iron ore price has continued its decline with a sharp pullback overnight. According to the AFR, the iron ore price in Singapore fell 4.2% to US$110.65 per tonne. An inventory buildup in China appears to be behind the steel-making ingredient's latest decline.
Gold price rises
ASX 200 gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.85% to US$2,365.7 an ounce. Traders were buying the precious metal after weak economic data in the United States boosted interest rate cut hopes.
