Market wraps 1st June 2020
Morning Bell - Jessica Amir
A busy week is on the cards for Australian investors. The RBA is meeting tomorrow with rates to remain on hold, while on Wednesday, first quarter economic data is out for the first time this year, with the market pricing 1.4% growth for the quarter.
The Aussie share market is eyeing a subdued start to June, suggesting a 0.4% fall at the open following a cracking close for May, with the ASX200 up 4.7%, while US equities gained 4%.
What to watch today:
- Several states have relaxed their restrictions in ACT, Victoria, NSW. NSW pubs, clubs, cafes and restaurants can have up to 50 customers from today, so keep an eye on food and beverage companies like Costa Group (ASX:CGC), Bega (ASX:BGA), Woolworths (ASX:WOW) and Coles (ASX:COL).
Trading ideas for today:
- Citi raised Event Hospitality & Entertainment (ASX:EVT) price target 31% to $9.75 following its 60% gain off its COVID-19 lows.
- Citi downgraded Lovisa (ASX:LOV) to a sell. However it’s a buy for Bell Potter, as the costume jewellery company has a strong balance sheet.
- Bell Potter reiterated breast screening company Volpara Health Technology (ASX:VHT) as a buy.
- Appen (ASX:APX) reaffirmed its calendar year earnings guidance on Friday and Bell Potter and Credit Suisse downgraded the stock to a hold.