Market wraps 17th September 2020
Morning Bell - Jessica Amir - Jessica Amir
The Aussie share market is eyeing a 0.2% fall at the open following Wall Street’s mixed lead.
U.S. stocks mostly fell overnight for the first time in three days, this came after the U.S. Federal Reserve dropped its economic growth forecast for next year to 4% from 5%, and shaved 2022’s GDP forecast to 3%.
What to watch today:
- The focus will be on employment numbers for August. We know 115,000 people gained jobs in July, but forecasts for August are dire as Victoria has been in lockdown. The unemployment rate is likely to worsen from 7.5% to 7.7%, but the RBA expects unemployment to surge to 10%.
- After the oil price gained 8% in two days, keep an eye on oil stocks: Oil Search (ASX:OSH), Origin Energy (ASX:ORG), Santos (ASX:STO), Woodside (ASX:WPL) and WorleyParsons (ASX:WOR).
Local trading ideas:
- Temple & Webster (ASX:TPW), Netwealth (ASX:NWL) and Breville Group (ASX:BRG) are giving off bullish signals according to Trading Central’s charting.
- The British High Court has ruled in favour of QBE (ASX:QBE) in two of three COVID-19 insurance case payouts. This reduces QBE’s UK business interruption costs to US$70 million. Bell Potter reiterated QBE as a buy but shaved its price target to $11.10 as a result, this implies 21% share price growth in a year from yesterday’s close of $9.20.
- The a2Milk Company (ASX:A2M) has been called out as a sell by Citi.