Morning Bell 21 February


Good morning, well commodities continue
to bounce back from coronavirus fears with investors buying the dip while US
equities had a bit of a different night tracking lower with most of the losses
coming in a sudden midday move leaving traders and investors scratching their
heads as to why US stocks were sold down while gold continued to receive funds
hitting new multi-year highs and bonds also came in favour as well.
Investors pointed to a Chinese state-run newspaper story that said coronavirus
cases spiked in a Beijing hospital. While yesterday as for our session we sore to
that brand new all-time high as Australia’s unemployment rate
unexpectedly rose meaning the RBA is now more likely to cut rates. We saw the
ASX200 lift 0.2% or 18 points closing at 7,163 points and currently at the minute the futures are
suggesting a flat start which means we’ll search for direction at the open
but with plenty of companies reporting today there’s lots to sink your teeth
into. Ardent Leisure the holiday park and lifestyle park operator which runs a lot
of these theme parks is expected report a half-year net loss of $13.6m we’ve got the stock as a buy flagging the stock we’ll have a
comeback. Inghams Group also reporting first-half 2020 net profit after tax
were expecting $42.7m for their profit we’ve
also got the stock as a buy really as chicken continues to be the cheapest of
the proteins. Mayne farmer half-year net profit after tax expected to come in at
$22m the lithium giant which is based in Argentina or
South America is expected to report a half-year net loss of $5.9m we’ve got the stock as a buy saying that the stock should bounce
back and the commodity itself should hit a low mid year and then should see
recovery on the back of electric vehicle demand, Platinum Asset Management, Rural Funds Group, Senex Energy and Charter Hall also report. Quickly just taking you
through the markets overseas as we mentioned Wall Street was lower
overnight we saw the Dow and the S&P 500 lose about 0.4% and the
Nasdaq was down the most 0. 7% particularly as they have been most to
lose given their bullish run this year and last year as well.
European markets also lower the German DAX was down the most 0.9%
while the broader Stoxx 600 was down 0.9%. Asian markets
were mixed and for a good reason we saw China’s Shanghai Comp rise 1.8%
as the Chinese Bank slashed lending rates while Japan’s Nikkei gained 0.3%
Hong Kong’s Hang Seng did go the other way falling slightly. Gold has set a
new five-year high hitting $1,652.70 an ounce as investors really hedge their portfolios. Oil has
continued to gain it’s now at $53.77 a barrel extending its
bounce back, the oil price is steady at 85.70 a tonne holding late January
highs and the Australian dollar is now at a five year low 66.14 US cents after yesterday’s weak unemployment data. Have a great day
happy trading and I look forward to seeing you in our weekly wrap.

Author Since: Mar 11, 2019

  1. Hi Jessica, I really enjoyed how you gave your buy tips and opinions on some of the stocks. It makes it interesting and involves Bell Direct more in the report. Thank you!

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