5 things to watch on the ASX 200 on Tuesday

Another busy day is expected on the ASX 200 on Tuesday…

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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.

Challenger results

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.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. 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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