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5 things to watch on the ASX 200 on Tuesday

Investor sitting in front of multiple screens watching share prices
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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a very disappointing note. The benchmark index sank 0.8% to 6,663 points.

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

ASX 200 expected to rebound.

The Australian share market looks set to bounce back from yesterday’s decline. According to the latest SPI futures, the ASX 200 is poised to open 34 points or 0.5% this morning. This follows a largely positive night of trade in Europe on Monday. US markets were closed for Martin Luther King Jr. Day.

NAB rated conviction buy.

Goldman Sachs has been running the rule over the banking sector. It appears much more positive on the banks and particularly National Australia Bank Ltd (ASX: NAB). The broker has put a conviction buy rating on NAB’s shares and increased the price target on them to $24.72. It has, however, downgraded Bendigo and Adelaide Bank Ltd (ASX: BEN) shares to a sell rating with a $9.24 price target.

Oil prices slide.

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices softened further. According to Bloomberg, the WTI crude oil price is down 0.5% to US$52.09 a barrel and the Brent crude oil price has fallen 0.65% to US$54.74 a barrel. Concerns over rising COVID cases has been weighing on oil prices.

Gold price rises.

It could be a better day for gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday after the gold price recovered slightly. According to CNBC, the spot gold price is up 0.4% to US$1,836.80 an ounce. Investors have been buying gold after COVID cases surged globally.

JB Hi-Fi given neutral rating.

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued now according to analysts at Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target on the retailer’s shares to $51.60. Although its performance in FY 2021 is well ahead of the broker’s forecasts, Goldman expects its earnings to normalise over the next couple of 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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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