5 things to watch on the ASX 200 on Tuesday

Challenger Ltd (ASX:CGF) and Commonwealth Bank of Australia (ASX:CBA) shares will be on watch on the ASX 200 on Tuesday…

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index edged ever so slightly higher to 5,944.5 points.

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

ASX 200 expected to rise.

It looks set to be a positive day of trade for the ASX 200 on Tuesday after U.S. stocks pushed higher. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. Overnight on Wall Street the Dow Jones pushed 0.6% higher, the S&P 500 rose 0.65%, and the Nasdaq index jumped 1.1%.  

Oil prices jump.

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher today after oil prices started the week strongly. According to Bloomberg, the WTI crude oil price is up 2.15% to US$40.60 a barrel and the Brent crude oil price is 2.05% higher to US$43.06 a barrel. This is the first time the WTI crude oil price has been over US$40 a barrel since March.

Gold price higher.

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) look set to continue their positive runs on Tuesday. According to CNBC, the spot gold price is up 0.75% to US$1,765.90 an ounce after demand for the safe haven asset increased following an uptick in coronavirus cases.

Challenger set to return.

The Challenger Ltd (ASX: CGF) share price looks likely to return from its trading halt this morning. The annuities company requested the halt on Monday while it undertook a $300 million equity raising. These funds will be raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. The proceeds will be used to further strengthen its capital position and provide flexibility to enhance earnings.

Commonwealth Bank hit with civil proceedings.

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today after a late announcement out of the bank on Monday. That announcement revealed that civil proceedings have been brought by ASIC against the bank and its Colonial First State Investments business. The claim alleges certain contraventions of conflicted remuneration provisions in the Corporations Act relating to the arrangement between the two parties for the distribution of Commonwealth Essential Super.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. 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.

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