On Monday the S&P/ASX 200 Index (ASX: XJO) was on form and started the week with a strong gain. The benchmark index overcame weakness in the banking sector to jump 1.5% higher to 5,321.4 points.
Will there be more of the same on Tuesday? Here are five things to watch:
ASX 200 expected to rise.
The ASX 200 looks set to continue its positive run on Tuesday after a positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 index is expected to open 10 points or 0.2% higher this morning. On Wall Street the Dow Jones climbed 1.5%, the S&P 500 rose 1.5%, and the Nasdaq index pushed 1.1% higher.
Oil prices crash lower again.
Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) may come under pressure today after oil prices crashed lower again. According to Bloomberg, the WTI crude oil price is down 24% to US$12.86 a barrel and the Brent crude oil price dropped 7.15% to US19.91 a barrel. Traders were selling oil due to fears that worldwide storage could soon fill as the coronavirus pandemic continues to hurt demand.
Gold price slides lower.
Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the decline today after the gold price tumbled lower. According to CNBC, the spot gold price is down 0.6% to US$1,725.60 an ounce. Hopes of lockdowns easing in the U.S. have boosted investor sentiment.
NAB returns.
The National Australia Bank Ltd (ASX: NAB) share price will be on watch today when it returns from its trading halt. The banking giant's shares were halted on Monday when it released its half year results and launched a $3.5 billion capital raising. NAB is raising the funds at $14.15 per share, which represents an 8.5% discount to its last close price.
NAB rated as a buy.
One broker that was satisfied with NAB's half year update was Goldman Sachs. This morning the broker retained its conviction buy rating and trimmed the price target on the bank's shares to $17.50. It believes the "result showed that NAB's ability to manage the trade-off between margins and volumes has improved considerably in recent years."
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
