On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very strong session and raced notably higher. The benchmark index stormed 1% higher to 7,778.1 points.
Will the market be able to build on this on Wednesday? Here are five things to watch:
ASX 200 expected to edge lower
It looks set to be subdued day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. On Wall Street, the Dow Jones rose 0.15%, the S&P 500 pushed 0.25% higher, and the Nasdaq edged higher.
Oil prices rise
ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good day after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 1.4% to US$81.44 a barrel and the Brent crude oil price is up 1.2% to US$85.28 a barrel. This recent rally has been driven by optimism over summer fuel demand.
Buy Life360 shares
The Life360 Inc (ASX: 360) share price is good value according to analysts at Bell Potter. In response to news that the location technology company has surpassed 2 million paying circles, the broker has reiterated its buy rating and lifted its price target to $17.75. It commented: "Life360 put out a media release saying it has just reached 2m global paying circles. This was notably ahead of our forecast which was 1.98m at 30 June 2024 and an increase of 86k in 2Q2024."
Gold price rises
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.65% to US$2,334.3 an ounce. This follows the release of US economic data which was supportive of US Federal Reserve interest rate cuts.
Beach Energy rated as a buy
Beach Energy shares could also be worth buying according to Bell Potter. This morning, the broker has responded to the energy producer's strategic review by retaining its buy rating with a trimmed price target of $1.75. It said: "The Strategic Review outcomes are largely as expected; strong on cost out targets and capital discipline. Adjusting for the updated outlook, EPS changes in this report are: FY24 +11%; FY25 -25%; and FY26 -11%."
