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5 things to watch on the ASX 200 on Tuesday

On Monday the S&P/ASX 200 Index (ASX: XJO) continued its impressive run with yet another solid gain. The benchmark index rose 0.5% to 6,132 points.

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

ASX 200 expected to storm higher.

It looks set to be another very positive day of trade for the Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is poised to open the day 44 points or 0.7% higher this morning. This follows a strong start to the week on Wall Street, which in late trade sees the Dow Jones up 0.9%, the S&P 500 1.6% higher, and the Nasdaq index a sizeable 2.5% higher.

Tech shares to rise?

A strong rise in the technology-focused Nasdaq index could be great news for the local tech sector on Tuesday. This is because the likes of Appen Ltd (ASX: APX) and Xero Limited (ASX: XRO) have a tendency to follow the lead of their U.S. counterparts. In late trade on Wall Street the Nasdaq index is up a sizeable 2.5%. A very strong gain by Apple is helping drive markets higher in the United States.

Gold price rises.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher. According to CNBC, the spot gold price is up 0.1% to US$1,928.40 an ounce. Overnight the price of the precious metal managed to reach a three-week high before giving back some of its gains.

Oil prices tumble lower.

It could be a difficult day for energy shares such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 2.55% to US$39.56 a barrel and the Brent crude oil price is down 2.4% to US$41.81 a barrel. Traders were selling oil after production came back online in Libya, Norway, and the United States following recent stoppages.

Commonwealth Bank AGM.

The Commonwealth Bank of Australia (ASX: CBA) share price will be one to watch on Tuesday when it holds its annual general meeting. The banking giant could potentially release a trading update along with its meeting presentation. Shareholders will also have the opportunity to vote on items such as the bank’s renumeration report.

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Returns as of 6th October 2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of Appen Ltd. 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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