On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.15% to 8,589.3 points.
Will the market be able to bounce back from 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 poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 41 points or 0.5% lower. In the United States, the Dow Jones was down 0.95%, the S&P 500 fell 0.8%, and the Nasdaq tumbled 0.9% on trade tariff concerns.
RBA meeting
Today is a big day for borrowers with the Reserve Bank of Australia (RBA) due to make a decision on interest rates. The good news for homeowners is that the market is convinced that the central bank will take rates lower today. According to the latest RBA Rate Tracker, the market is pricing in a 97% probability of a 0.25% reduction in the cash rate to 3.6% this afternoon. Another cut to 3.4% is largely priced in by September.
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 pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$68.02 a barrel and the Brent crude oil price is up 2% to US$69.65 a barrel. Oil prices rose after supply tightened.
Buy Life360 shares
Life360 Inc (ASX: 360) shares could be heading to record levels according to analysts at Bell Potter. This morning, the broker has reaffirmed its buy rating on the location technology company's shares with an improved price target of $37.50. It said: "We have rolled forward our EV/Revenue and EV/EBITDA valuations by a year given we are now past half year. […] The net result is 20% increase in our price target to $37.50 which has mostly been driven by increases in the relative valuations. The PT is a 13% premium to the share price and we maintain our BUY recommendation with the upcoming Q2 result a potential catalyst."
Gold price edges higher
ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a relatively positive day after the gold price edged higher overnight. According to CNBC, the gold futures price is up 0.1% to US$3,346.2 an ounce. This was driven by concerns over trade tariffs after US President Trump slapped 25% tariffs on Japan and South Korea.
