On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small gain. The benchmark index rose slightly to 8,233.5 points.
Will the market be able to build on this on Tuesday? Here are five things to watch:
ASX 200 expected to jump
The Australian share market is expected to jump on Tuesday following a very strong start to the week in the United States. According to the latest SPI futures, the ASX 200 is poised to open the day 93 points or 1.1% higher. On Wall Street, the Dow Jones was up 2.8%, the S&P 500 rose 3.25%, and the Nasdaq jumped 4.35%. This was driven by the US and China signing a trade deal.
Life360 results
All eyes will be on Life360 Inc. (ASX: 360) shares today when the location technology company releases its quarterly update. According to a note out of Goldman Sachs, its analysts are expecting a strong results from Life360. So much so, it sees potential for a guidance upgrade. The broker said: " Guidance remains conservative in the near-term, in our view, with FY25 Revenue of US$450-480m (vs GSe US$467m vs VA Cons US$465m) / Adj. Ebitda of US$65-75m (vs GSe US$74m vs VA Cons US$71m) and Life360 having a track-record of guidance upgrades. Long term, strong revenue growth (inc. high margin Indirect) could see the 35% Adj. Ebitda margin target (GSe 30% in FY30; VA cons. 31%) achieved sooner than expected."
Oil prices rise
It could be a good session for ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$62.04 a barrel and the Brent crude oil price is up 1.7% to US$65.00 a barrel. Traders were bidding oil prices higher in response to the US-China trade deal.
Buy REA Group shares
Rea Group Ltd (ASX: REA) shares are a buy according to Bell Potter. This morning, the broker has reaffirmed its buy rating on the property listings company's shares with an improved price target of $267.00. It said: "REA expects its market leading position and network effect to sustain a moat ahead of a new market entrant via DHG (Hold, TP: $4.20/sh) purchase; we anticipate ongoing double-digit yield increases from clear depth product momentum and favourable house price backdrop."
Gold price sinks
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a tough day on Tuesday after the gold price sank overnight. According to CNBC, the gold futures price is down 3.1% to US$3,240.8 an ounce. News that the US and China have signed a trade deal has reduced safe haven demand.
