On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a subdued note. The benchmark index finished the day flat at 7,538.4 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 Australian share market on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% higher this morning. This is despite a poor start to the week on Wall Street, which saw the Dow Jones fall 0.3%, the S&P 500 drop 0.1%, and the Nasdaq edge 0.15% higher.
The Challenger Ltd (ASX: CGF) share price will be on watch today when it releases its full year results. According to a note out of Goldman Sachs, its analysts expect the annuities company to report a normalised profit after tax of $318 million for FY 2021. This is expected to support a 22 cents per share dividend. Looking ahead, the broker is forecasting a 10% increase in profit to $349 million in FY 2022.
Oil prices sink
Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could come under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 2.1% to US$66.84 a barrel and the Brent crude oil price has fallen 2% to US$69.29 a barrel. Traders were selling oil amid concerns over its outlook due to surging COVID-19 cases.
Gold price tumbles
It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price dropped again. According to CNBC, the spot gold price is down 1.8% to US$1,731.5 an ounce. The spot gold price hit a four-month low amid concerns the US Fed will start tapering sooner than expected.
NAB shares rated as a buy
The National Australia Bank Ltd (ASX: NAB) share price could be good value according to analysts at Goldman Sachs. This morning the broker retained its conviction buy rating and $30.34 price target on the banking giant’s shares. This follows the announcement of an agreement to buy the assets and liabilities of Citigroup’s Australian consumer business for $1.2 billion. Goldman sees strategic merit in the transaction.