Market wraps 14th October 2021
Morning Bell - Jessica Amir
The Aussie share market is set to open higher, with the futures suggesting a rise of 0.3%, with a focus on tech and growth stocks as bond yields have slightly fallen.
What to watch today:
- In economic news, employment data for September will be released at 11:30am AEDT. The market expects unemployment to worsen from 4.5% to 4.7%, and 100,000 jobs to be lost.
- The iron ore price has fallen 3.7% to US$124.17 after one of China’s biggest property developers missed a bond coupon payment. Expect BHP (ASX:BHP), Rio Tinto (ASX:RIO), Fortescue Metals (ASX:FMG) and other iron ore players to lose traction today.
- Oil holds a 7-year high at US$80.61 a barrel, while the price of lithium carbonate nears its record all time high. And coal is getting closer to its all time high as flooding in China is causing further supply concerns.
- Soft commodities are rallying including cotton, beef, poultry and hogs.
- Whitehaven Coal (ASX:WHC) is set to report and Redbubble (ASX:RBL) will provide a trading update today.
- Bubs Australia (ASX:BUB) was upgraded by Bell Potter from a HOLD to a BUY, with an increased price target of $0.65, implying 30% share price growth in a year. Meanwhile, Citi has BUB as a HOLD. Bubs Australia (ASX:BUB) shares rose 38% after reporting a 96% jump in revenue year on year, to $19 million. Bubs Infant Formula’s gross revenue increased over 120% year on year. Similarly, Adult Goat Milk Power’s gross revenue grew 100% on the prior year. This is due to China’s sales rising 156% year on year and contributing 53% to quarterly gross revenue.
- Resolute Mining (ASX:RSG), Calidus Resources (ASX:CAI) and Electro Optic Systems (ASX:EOS) according to Trading Central.