Market wraps 27th January 2021
Morning Bell - Jessica Amir
The Aussie share market looks set to open in the red this morning, down about 0.32%. This comes following Wall Street’s struggle to find direction for three main reasons:
1) Key earnings, 2) the Federal Reserve’s policy meeting and 3) concerns about more US stimulus.
COVID-19 cases have topped more than 100 million cases worldwide in just about 13 months as mutations add to the spread.
What to watch today:
- NAB Business Confidence and Westpac leading index figures for December are both out at 11:30am.
- The oil price slid 0.3% to US$52.61 following COVID-19 cases continuing to rise globally, and amid reports of a blast in Saudi Arabia. Given this, keep an eye on energy producers like Beach Energy (ASX:BPT) and Santos (ASX:STO) today.
- The gold price softened on concerns over a fresh US COVID-19 aid package. The slightly weaker dollar limited losses. The gold price fell about 0.25% to US$1,850. So, keep an eye on Newcrest Mining (ASX:NCM) and Saracen Mineral (ASX:SAR).
Local trading ideas:
- Leading mining services company, Mineral Resources (ASX:MIN) has a buy rating by Bell Potter, with an increased price target of 57% to $44.40 (previously $28.50). This comes as the strength of the iron ore price currently shows no sign of abating.
- Gold producer, Gold Road Resources (ASX:GOR) also has a buy rating by Bell Potter, with an increased price target of about 3% to $2. Bell Potter believes the company is back on track with a better fourth quarter 2020 expected.
- Race Oncology (ASX:RAC), Azure Minerals (ASX:AZS) and GDI Property Group (ASX:GDI) are all giving off bullish charting signals according to Trading Central.