5 things to watch on the ASX 200 on Tuesday

Here's what to expect on the local market on 1 October.

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a strong gain. The benchmark index rose 0.7% to 8,269.8 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

A male ASX 200 broker wearing a blue shirt and black tie holds one hand to his chin with the other arm crossed across his body as he watches stock prices on a digital screen while deep in thought

Image Source: Getty Images

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday despite a positive start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 26 points or 0.3% lower. On Wall Street, the Dow Jones rose 0.05%, the S&P 500 climbed 0.4%, and the Nasdaq rose 0.4%.

REA withdraws Rightmove offer

The Rea Group Ltd (ASX: REA) share price will be on watch today after the property listings company withdrew its takeover offer for UK-based Rightmove (LSE: RMV). REA Group's CEO, Owen Wilson, said: "We approached Rightmove's Board because we strongly believed in the opportunity to create a globally diversified leader in the digital property sector that would benefit both REA and Rightmove shareholders. We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available. They had nothing to lose by engaging with us."

Oil prices mixed

It could be a subdued session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) on Tuesday after oil prices had a mixed start to the week. According to Bloomberg, the WTI crude oil price is up 0.1% to US$68.22 a barrel and the Brent crude oil price is down 0.3% to US$71.76 a barrel. This meant that oil prices posted their third monthly decline in a row.

Life360 named as a buy

Life360 Inc (ASX: 360) shares are still great value according to analysts at Goldman Sachs. This morning, the broker has reaffirmed its buy rating on the location technology company's shares with an improved price target of $21.85. This implies potential upside of over 15% for investors. It said: "Life360's ability to manage costs while driving strong revenue growth has surprised to the upside since pivoting to profitable growth in early 2023, and we sit well ahead of Visible Alpha Consensus Data EBITDA expectations (7-10%) across FY24-26E."

Gold price fall

ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have another poor session after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.55% to US$2,653.6 an ounce. This couldn't stop the precious metal from recording its best quarter in four years.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, and REA Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Rightmove Plc. The Motley Fool Australia has recommended REA Group. 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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