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It was an eerie day for the S&P/ASX 200 Index (ASX: XJO) yesterday as the market failed to hold its opening gains. The weakness that began to show itself took off overnight with the German DAX index slumping 3.7% while there were falls across the board for United States indices. This looks set to continue today with the ASX 200 opening lower this morning.

On a more positive note, while the Dow Jones Industrial Average Index (DJX: .DJI), Nasdaq Composite (NASDAQ: .IXIC) and S&P 500 Index (SP: .INX) all fell within the range of 1.6% to 2.3%, they all closed well above their lows in last night’s session. 

Soaring COVID-19 cases in the US and Europe 

The US, Russia and many European states have set new daily records for COVID-19 cases. There are now more than 43 million people that are reported to have been infected by the coronavirus globally and more than 1 million have died. 

But it is perhaps the trajectory of cases across Europe that is most worrisome. France, Spain, Italy, Germany and the United Kingdom all recorded seven-day rolling averages of approximately 5,000 cases back in April. This was seen as the peak and as lockdown measures kicked in, daily confirmed cases quickly headed back down. 

Today, these countries are all setting record increases, and not by a fraction, but many times over. France faces its biggest coronavirus challenge yet after posting more than 50,000 daily cases for the first time on Sunday. Other European countries have recorded daily cases within the range of 10,000 to 20,000, greatly overshadowing April cases. 

Governments have been reluctant to impose lockdown measures that curbed cases at the start of the year at the expense of the economy. But as new cases start to beat old records many times over, Europe is bracing for new lockdown measures. 

Italy’s prime minister on Sunday announced new lockdown measures for bars, restaurants and public gatherings in an attempt to avoid a full blown nationwide lockdown. The new decree discourages movements across regions, but no limitation will be introduced by law.

European countries have opted for less extreme lockdown measures than what we have experienced in Victoria. While there are pros and cons to both approaches, it will be interesting to see which practice will lead to better outcomes for Europe’s communities and economy. 

ASX 200 opens lower

The doom and gloom weighed on the economic outlook as global financial markets took a significant hit overnight. This is playing out on our own ASX this morning with the ASX 200 falling 0.82% in the first 15 minutes of trade.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX stocks are outperforming today after brokers upgraded them to “buy”
• ASX 200 was mixed today, ends down 0.2%
• ASX 200 up 0.3%: Coca-Cola Amatil rockets on takeover approach, Westpac’s $1.2bn earnings hit
• 5 major ASX 200 events this week

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Evolution Mining Ltd (ASX: EVN) share price is dropping lower on Tuesday following the release of its first quarter production update.

At the time of writing, the gold miner’s shares are down 0.5% to $5.60.

How did Evolution perform in the first quarter?

For the three months ended September 30, Evolution’s group gold production came in at 170,021 ounces. This was 22% reduction on the prior quarter’s production of 218,104 ounces.

This comprises Cowal production of 51,774 ounces, Ernest Henry production of 24,569 ounces, Red Lake production of 26,638 ounces, Mungari production of 35,370 ounces, Mt Rawdon production of 20,024 ounces, and Mt Carlton production of 11,646 ounces.

Evolution’s production was achieved with an all-in sustaining cost (AISC) of A$1,198 per ounce, up from A$1,088 per ounce in the previous quarter.

Management notes that its AISC equates to US$857 per ounce, which places Evolution at the bottom of the cost curve amongst major and mid-tier global gold producers. All-in costs (AIC) came in at A$1,663 per ounce, resulting in an AIC margin of A$871 per ounce.

All operations generated positive net mine cashflow during the quarter, this led to the company delivering mine operating cash flow and net mine cash flow of A$272.3 million and A$183.4 million, respectively. Mine capital investment for the period was A$88.1 million, down from A$111.5 million in the prior quarter.

As a result of this, at the end of the period, Evolution had cash in the bank of A$369.7 million and bank debt of A$550 million.

Outlook.

No guidance was given for the remainder of FY 2021. However, management commented on a number of plans it has to boost future production.

This includes the board’s approval of the development of the Galway exploration decline. This will enable additional drilling to increase underground Ore Reserves and will also be used for future production.

Management notes that the 2,300 metre decline has received regulatory approval and is another important milestone in growing Cowal’s production to over 350,000 low cost ounces per annum.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to sell today
• 5 things to watch on the ASX 200 on Tuesday

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. 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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is trading higher following the release of its first quarter update.

At the time of writing the regional bank’s shares are up 0.5% to $6.71.

How did Bendigo and Adelaide Bank perform in the first quarter?

Bendigo and Adelaide Bank has started FY 2021 strongly in respect to its lending.

According to the update, the bank achieved total lending growth of 11% and residential lending growth of 16.1% during the first quarter. Management notes that these are both well above system growth.

In addition to this, the company’s net interest margin (NIM) continues to be well managed, increasing one basis point since the end of the second half of FY 2020 to 2.3% for the first quarter.

Bendigo and Adelaide Bank’s Managing Director, Marnie Baker, commented: “In line with our strategy, we are focused on driving sustainable growth through active cost management, and we continue to target income growth to exceed cost growth this financial year.”

The company’s leader also revealed that the bank is well-placed to navigate the pandemic.

“Our sights are firmly fixed on achieving outcomes for all stakeholders and we are adequately provisioned to manage through the pandemic. Pleasingly, the number and balances of COVID-19 support packages have significantly reduced, including in Victoria, as the Bank continues to work individually with customers on repayment deferral arrangements,” she explained.

Customer accounts on deferral.

As of 16 October, Bendigo and Adelaide Bank had 6,797 customer accounts still on deferral. This is down a sizeable 69% from the peak on 31 May and down 63% since 31 August.

The value of the accounts where repayments have been deferred is ~$2.5 billion. Once again, this is down significantly from the peak, which was $6.9 billion in June.

Residential and consumer support packages total 4,408 accounts, down 74% since the peak in May. Whereas, Commercial support packages total 2,389 accounts, down 49% since peaking in July.

These numbers are expected to continue to reduce in coming months as repayment deferral periods expire and Melbourne reopens.

Marnie Baker commented: “It’s rewarding to see our personalised support has enabled more than two-thirds of these customers to get back on their feet and we are further encouraged by the Victorian Premier’s announcement to reopen Melbourne’s retail and hospitality industries from tomorrow.”

Though, the bank remains very supportive of those that are still in need of help.

“We are also committed to ensuring tailored arrangements are agreed with those customers still on repayment deferral arrangements prior to their deferral period ending, and that measures are in place to allow for a smooth transition and fair outcomes are achieved for customers and shareholders,” the managing director concluded.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 major ASX 200 events this week
• ASX 200 falls, Tyro (ASX:TYR) up on merchant deal
• Tyro (ASX:TYR) share price shoots higher on Bendigo and Adelaide Bank (ASX: BEN) deal
• Bank named and shamed for hounding investors

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. 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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The PointsBet Holdings Ltd (ASX: PBH) share price will be in focus this morning after the release of the sports betting company’s first quarter update.

How did PointsBet perform in the first quarter?

PointsBet was a very strong performer in the first quarter and recorded exceptional growth across all major metrics.

For the three months ended 30 September, the company reported turnover of $691.9 million, up 193% from the prior corresponding period.

The majority of PointsBet’s turnover continues to be generated in the Australian market. The Australian business reported a 221% increase in turnover to $527.7 million, which was supported by a 130% increase in US turnover to $164.2 million.

Growing at an even quicker rate was the company’s gross win metric, which lifted 282% to $70.4 million for the quarter. This comprises Australian gross win of $60.5 million and US gross win of $9.8 million. The net win metric also grew strongly, up 222% on the prior corresponding period to $38.1 million.

At the end of September, PointsBet had a total of 164,500 active clients, up 88% since this time last year. This comprises 124,700 Australian clients and 39,800 US clients. The latter was up 159% on the prior corresponding period.

Net cash used in operating activities was $10 million. Though, excluding movement in player cash accounts, net cash used in operating activities was $21.6 million. Management notes that its operating net cash outflows were driven by cost of sales ($19 million), non-capitalised staff costs ($6.4 million), marketing costs ($28.6 million) and administration and corporate costs ($5.8 million).

Despite these outflows, PointsBet finished the period with a hefty $436.5 million of corporate cash. A significant amount of this is held in US dollars.

Outlook.

While no firm guidance was given for the remainder of the financial year, management appears positive on its outlook.

It commented: “The Company recognises a structural change in the Australian online wagering market, including brand consolidation (BetEasy, previously the third largest brand in the Australian market merging with SportsBet during the quarter) and a shift from retail (venue) to online wagering. As a result, the Company is pursuing a strategy to increase Net Win growth and market share.”

Whereas in the United States, it notes that its NBC Sports deal aligns the company with a 2025 US$12 billion opportunity.

More reading

• Pointsbet (ASX:PBH) share price continues to excite investors
• 3 ASX shares I’d buy for summer 2021
• 3 ASX growth shares that I would buy in 2020
• Why ASX gambling shares like PointsBet (ASX:PBH) have surged in 2020
• 2 ASX 200 tech shares I don’t want to miss if the market rallies 

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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The Blackmores Limited (ASX: BKL) share price will be one to watch this morning following the release of its annual general meeting update.

What was in Blackmores’ update?

As well as providing investors with a summary on how the health supplements company performed in FY 2020, management revealed its expectations for the current financial year.

According to the release, while no specific full year profit guidance has been given, it is anticipating full year profit growth in FY 2021. This is despite additional cost variances arising from Braeside manufacturing ownership in the first half of the year.

Though, management has warned that its profit growth will come predominantly from the second half of the financial year.

Looking beyond FY 2021, management notes that it has confidence in its renewed strategy and expects it to put the company back on a path to sustainable, profitable growth and in a position to restore future dividends.

No real update was given for its performance in the first quarter of the year. Though, management did advise that it has completed its restructuring, which is set to deliver $15 million of gross annualised savings from the second half.

It has also initiated a Leading Value Position (LVP) savings program, which will contribute to cost of goods sold savings of $10 million in FY 2021.

Global Therapeutics divestment.

In a separate announcement, Blackmores has revealed an agreement to sell its Global Therapeutics business to McPherson’s Ltd (ASX: MCP) for $27 million.

Chief Executive Officer, Alastair Symington, commented: “Fusion Health and Oriental Botanicals are wonderful brands which play an important role in the health and wellness routine of many Australians. While we have decided that Global Therapeutics is no longer part of of our strategic priorities, I want to acknowledge the unique value of these brands and believe Global Therapeutics will now have an opportunity to reach its true potential with McPherson’s.”

The transaction is scheduled for completion on 30 November. It remains subject to conditions in relation to the transfer of a minimum number of employees and material contracts and there being no material adverse change to the business.

More reading

• 5 things to watch on the ASX 200 next week
• McPherson’s (ASX:MCP) share price on watch on Wednesday after Q1 update
• Why I like ASX consumer staples shares in the current climate
• These were the worst performing shares on the ASX 200 last week
• Why a2 Milk, Blackmores, Ramelius, & Synlait Milk shares are tumbling lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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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Is the Australia and New Zealand Banking Group (ASX: ANZ) share price a buy today?

The ANZ share price has gone up by 14.3% over October alone and the month hasn’t finished yet. Though it may fall a bit today. Either way, it has gone up nicely in a short amount of time.

What has happened recently?

ANZ has been going up after a few positive developments for the bank.

‘Responsible’ lending laws are going to be axed so that credit will flow easier to borrowers so that the economy can recover from COVID-19 quicker. It’s up to you to decide what that means in light of the Hayne royal commission – but it’s going to help ANZ’s growth that’s for sure.

Another big help for positive sentiment was the recent Australian federal budget that announced tax cuts for a large number of Australian workers. We’ve seen how well jobkeeper and an improved jobseeker helped stabilise the Australian economy during this recession. Tax cuts could be another boost for the economy and the share market.

Melbourne’s COVID-19 situation has been improving throughout October and this week was the first time in months that it reported 0 new daily cases. Retail will finally open and most other businesses can open in a couple of weeks. This should be good news for the strength of ANZ’s Victorian loan book.

Not everything is great though

ANZ’s loan book isn’t impervious to COVID-19 difficulties. In the third quarter of FY20, it recognised another provision charge of $500 million. This was on top of the $1.56 billion provision in the second quarter. ANZ’s total provision balance is now $4.65 billion.

One of the most worrying statistics from the third quarter was that the number of Australian home loans that are overdue by more than 90 days increased by 18 basis points (from 31 March 2020) to 1.28% at 30 June 2020. These borrowers are the ones that were ineligible for deferral.

How many borrowers will go from a current payment holiday to being an overdue borrower? Thankfully a number of borrowers are now making repayments again, even if some of them are only making interest-only repayments.

There are a number of issues hurting ANZ’s net interest margin (NIM) at the moment: It’s a low interest rate environment in all geographies, there has been a shift in customer preferences to fixed interest loans, across the loan market there is higher competition and retention pricing, and there has been a reduction in unsecured (higher margin) retail lending.

It’s a difficult period, I’m not buying bank shares

COVID-19 has caused a tough environment for the banks. Increased lending may be good news for the bank but there are plenty of other factors that are not helping ANZ’s cause.

The RBA has said that interest rates are likely to stay low for a few years. So I can’t see ANZ’s profit recovering to FY19 levels any time soon. Particularly whilst loan arrears are elevated and rising. Royal commission remediation continues to bite at big bank profits.

ANZ has done quite well to remain resilient during this period of uncertainty and maintain a strong balance sheet.

There are plenty of other ASX shares that I’d buy for dividends such as Magellan Financial Group Ltd (ASX: MFG), Brickworks Limited (ASX: BKW), Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and APA Group (ASX: APA).

I think there are other ASX shares that offer more growth potential than ANZ and can still pay a growing dividend for shareholders. There may be a time that ANZ is worth buying, perhaps in a rising interest rate environment, but I wouldn’t want to buy it for my own portfolio today.

More reading

• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• 3 important rules to help you build wealth
• 5 things to watch on the ASX 200 next week
• What to expect from the ANZ Bank (ASX:ANZ) full year result next week
• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. 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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There are a good number of dividend shares for investors to choose from on the Australian share market. Two that I think are among the best on offer are listed below.

Here’s why I think they would be top options for income investors in November:

Coles Group Ltd (ASX: COL)

The first ASX dividend share I would buy is Coles. I continue to believe that the supermarket giant is one of the best income options on the Australian share market. This is due to its defensive qualities, strong market position, and positive long term growth outlook. The latter is being underpinned by its refreshed strategy and long history of comparable store sales growth. In fact, in August, Coles reported its 51st consecutive quarter of Supermarkets comparable sales growth. I think this is a staggering record and demonstrates the quality of its business.

And while this incredible run is likely to come to an end next year when it cycles the third and fourth quarters of FY 2020, which saw sales spike from panic buying at the height of the pandemic, I expect it to resume its comparable store sales growth again soon after. In the meantime, based on the current Coles share price, I estimate that it offers a fully franked ~3.6% dividend yield in FY 2021.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider buying is Coles’ former parent, Wesfarmers. I believe the conglomerate is well-positioned for growth over the coming years thanks to its high quality portfolio of assets. These include Bunnings, Kmart, Target, Officeworks, online retailer Catch, and a collection of industrial businesses. The key business for me is the Bunnings business, which I believe is well-placed for growth thanks to government home improvement stimulus and personal tax cuts. The latter should also be supportive for other retail businesses. 

Another reason I like Wesfarmers is its strong balance sheet and management’s history of making earnings accretive acquisitions. I suspect the company will be adding to its portfolio before the end of FY 2021 and boosting its future growth. For now, I expect it to pay a fully franked dividend of ~$1.50 per share in FY 2021. Based on the latest Wesfarmers share price, this equates to an attractive fully franked 3.2% dividend yield.

More reading

• What to expect from the Coles Q1 update this week
• What zero COVID-19 cases in Victoria means for ASX 200 shares
• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• 5 things to watch on the ASX 200 next week
• Why you shouldn’t sweat the small stuff when it comes to investing

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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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I think there are some great ASX shares out there that are worth buying in a heartbeat.

Some tech shares like Altium Limited (ASX: ALU) and Pro Medicus Limited (ASX: PME) are great businesses, but I think the market fully understands the potential – that’s why they trade on such a high price/earnings ratio.

However, there are some ASX shares that still look really good value to me:

City Chic Collective Ltd (ASX: CCX)

City Chic is a plus-size fashion retailer of clothes, footwear and accessories.

The City Chic share price dropped 6.5% yesterday and it has actually fallen by 29% since 18 August 2020.

The company has been losing investor sentiment since it said that it hadn’t won the Catherines auction. Catherines was a US retailer that was in financial trouble and was sold to a prospective buyer.

Whilst it was disappointing that the ASX share didn’t win the auction. I think there’s a couple of things to think about the failed bid. I think it was a good sign that City Chic didn’t want to overpay – it shows that management respect shareholder capital.

The other thing to remember is that the company still sees other opportunities to add to its collective and take more market share. City Chic could soon put that money from the capital raising to work, sooner than expected.

But it’s the organic growth I’m most excited about with this ASX share. City Chic sells a good proportion of its products to the northern hemisphere, which is a huge market. It also sells a lot of products online. Those are attractive attributes about the ASX share in my opinion.

At the current City Chic share price it’s valued at 17x FY23’s estimated earnings.

Pacific Current Group Ltd (ASX: PAC)

Pacific Current describes itself as a global multi-boutique asset management business committed to partnering with exceptional investment managers. It combines capital with strategic business development to help businesses grow.

Pacific is invested in a number of interesting fund managers. Some of them are growing very well. For example, in FY20, fund manager GQG grew its funds under management (FUM) by 78% in one year from US$25.1 billion to US$44.6 billion.

Indeed, Pacific’s FUM has been growing strongly recently. In FY20, excluding investments sold and acquired, Pacific’s FUM grew by 52% to $93.3 billion.

That FUM growth and asset gathering efforts was impacted by COVID-19. This ASX share has a lot of growth potential. In FY20 alone it grew its underlying earnings per share (EPS) by 18%.

Pacific thinks its boutiques are well positioned to secure new commitments from investors in FY21 as institutional investor activity resumes. Not only that, but the company thinks it will be able to deploy capital into new, diversifying investments in FY21.

I think there is a lot to like about this ASX as its underlying earnings could compound nicely over the next few years.

At the current Pacific share price it’s valued at 9x FY23’s estimated earnings. It also offers a grossed-up dividend yield of 8.1%.

Foolish takeaway

I think both of these ASX shares look really good value when you just look ahead a couple of years. City Chic is continuing on its path to becoming a global leader in plus-size fashion, so I think it’s worth being along for the ride.

Pacific has had a volatile history. But I think it’s on a good path now and continues to see strong underlying growth. I think it can offer exposure to the theme of people looking for return (from fund managers) in a world of low interest rates. I believe Pacific is a solid option for total returns.

More reading

• 3 ASX dividend shares to buy with yields over 7.5%
• 3 small cap ASX shares I’d buy with $3,000 right now
• 4 ASX shares to buy for a rare Christmas surprise
• Beat the low interest rate with these ASX dividend shares
• Is it time to go all in on ASX shares?

Tristan Harrison owns shares of Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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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If you’re a growth investor looking for some new investments, then I think you’re very much in luck right now.

This is because I believe there are a number of quality companies that are well-placed to deliver strong earnings growth over the coming years.

Three that jump out at me right now are listed below. Here’s why I would Invest $3,000 across them:

a2 Milk Company Ltd (ASX: A2M)

The first growth share that I think investors ought to buy is A2 Milk Company. It is an infant formula and fresh milk company which has been growing at a rapid rate over the last few years. This growth has been driven largely by the increasing demand for its premium infant formula in the China market, but also its expanding fresh milk footprint. And while FY 2021 appears likely to be an off-year for the company because of the pandemic’s impact on the daigou channel and pantry de-stocking, I’m confident the company will bounce back strongly in FY 2022. Especially given its expanding distribution in China through mother and baby stores. Another positive is that management has the option of boosting its growth with acquisitions thanks to its significant cash balance.

ELMO Software Ltd (ASX: ELO)

Another growth share to consider buying is ELMO. It is a cloud-based human resources and payroll software company that streamlines a wide-range of processes through a single unified platform. ELMO has been growing at a strong rate over the last few years and looks well-placed to continue this positive form in the years that follows. This is thanks to rapid adoption of cloud-based solutions, the quality of its platform, and its growth through acquisition strategy. In fact, the company has recently just boosted its offering with the acquisition of UK-based Breathe. This gives the company access to the SME market and plenty of cross-selling opportunities in the $6.8 billion UK market. 

Kogan.com Ltd (ASX: KGN)

A final growth share to buy is this ecommerce company. While its shares are not cheap now after their incredible gains in 2020, I still believe they would be a great long term option. This is because Kogan and its increasingly popular website appear perfectly positioned to benefit from the structural shift to online shopping that has been accelerated by the pandemic. In addition to this, following a capital raising earlier this year, management has the option to make value accretive acquisitions in the near term to boost its growth.

More reading

• How did ASX retail shares perform in the latest quarter?
• I think the A2 Milk (ASX:A2M) share price is strong buy
• The best time to invest may feel uncomfortable
• Got $1,000? You should buy one of these 8 ASX shares
• 3 sublime ASX growth shares to buy this month

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 and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended Elmo Software and Kogan.com 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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On Monday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and ended the day slightly lower. The benchmark index fell 0.2% to 6,155.6 points.

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

ASX 200 expected to sink lower.

The Australian share market looks set to sink notably lower on Tuesday after rising COVID-19 levels led to global markets being sold off overnight. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.9% lower this morning. In late trade on Wall Street the Dow Jones is down 2.8%, the S&P 500 has fallen 2.3%, and the Nasdaq has dropped 2.1% lower. 

NAB rated as a buy.

The National Australia Bank Ltd (ASX: NAB) share price is in the buy zone according to analysts at Goldman Sachs. This morning the broker retained its conviction buy rating but trimmed its price target slightly to $20.89. Goldman remains very positive on NAB, even after factoring its recent remediation and one-offs into the equation.

Gold price trades flat.

Unfortunately for gold miners like Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST), the market selloff hasn’t led to the gold price storming higher. According to CNBC, the spot gold price is trading mostly flat at US$1,904.20 an ounce. COVID-19 fears were offset by a stronger U.S. dollar.

Oil prices tumble lower.

Energy shares such as Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could drop lower today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 3.2% to US$38.56 a barrel and the Brent crude oil price has fallen 3.15% to US$40.46 a barrel. This was driven by concerns that rising COVID-19 cases could reduce demand for oil.

Annual general meetings.

A number of companies are holding their annual general meetings today and could provide updates at their virtual events. This includes regional bank Bendigo and Adelaide Bank Ltd (ASX: BEN), building products company Boral Limited (ASX: BLD), and auto & water products company GUD Holdings Limited (ASX: GUD).

More reading

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• Leading brokers name 3 ASX shares to buy today
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• 5 major ASX 200 events this week

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. 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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