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Wall Street started the new trading week in positive territory as investors looked toward a potential end to the government shutdown now in its 3rd week, and as Apple shares boosted tech stocks following an upgrade to a buy rating from Loop Capital. The Dow Jones rose 1.12%, the S&P 500 also climbed 1.07% and the Nasdaq ended the day up 1.37%.

In Europe overnight markets closed mostly higher as defence stocks drove gains in the region. The STOXX 600 gained 1%, Germany’s DAX added 1.9%, the French CAC climbed 0.4% and, in the UK, the FTSE100 ended the day up 0.5%.

Across the Asia markets on Monday, it was a positive session as key economic data out in the region boosted investor sentiment. Japan’s Nikkei rose 3.37% to a fresh record high, while China’s CSI index added 0.53%, Hong Kong’s Hang Seng climbed 2.52% and South Korea’s Kospi index ended the day up 1.76%.

China’s Q3 GDP data out yesterday weighed on investor sentiment with the reading coming in at expansion of 1.1% over the September quarter, which exceeded analysts’ expectations of 0.8% expansion, and over the 12-months to September the Chinese economy expanded 4.8% which met forecasts, signalling a material rebound in economic recovery post pandemic is potentially finally underway.

The local market started the new trading week lower early on Monday before turning positive to post a 0.4% rise at the closing bell led by a rally for financials and REIT stocks on Monday.

Neuren (ASX:NEU) shares took off yesterday with a gain over 4% after the pharmaceutical company announced it has received US FDA Fast Track Designation for its drug candidate NNZ-2591 for the treatment of Phelan-McDermid syndrome. Currently, there are no FDA-approved treatments for Phelan-McDermid syndrome which places Neuren at the forefront of care for this condition when the drug reaches commercialisation.

Vehicle parts provider Bapcor (ASX:BAP) tumbled over 17.5% on Monday after the company reported a profit downgrade and disclosed a $12m pre-tax earnings hit due to challenging operating practices in its trade division.

Deep Yellow (ASX:DYL) also dived over 18% after the uranium company announced the immediate exit of its Chief Executive, John Borshoff, and will be replaced by the company’s CFO, Craig Barnes as acting CEO until a permanent appointment is made.

What to watch today:

• On the commodities front this morning oil is trading 0.3% lower at US$57.47/barrel, gold is back in record territory with another gain of 2.72% to trade at US$4365.85/ounce and iron ore is down 0.2% at 105.35/ounce.
• The Aussie dollar has strengthened against the greenback to buy 65.16 U.S. cents, 98.18 Japanese yen, 48.5 British pence and 1 New Zealand dollar and 13 cents.
• Ahead of Tuesday’s trading session the SPI futures are anticipating the ASX will open the day up 0.5%.

Trading ideas:

• Bell Potter has reduced the 12-month price target on Beach Energy (ASX:BPT) from $1.25 to $1.10 and maintain a hold rating on the energy exploration and development company. The price target was decreased despite strong quarterly results because the medium-term earnings outlook worsened, with the analyst reducing EPS forecasts in FY27 (-18%) and FY28 (-9%) due to factors like unsuccessful exploration (e.g., Hercules-1) and ongoing high capex. The Hold rating was maintained as near-term production is steady and cash flow is expected to improve, but the longer-term growth and returns remain uncertain.
• And Bell Potter has initiated coverage of Austco Healthcare (ASX:AHC) with a buy rating and a 12-month price target of 55cps. AHC manufactures sophisticated nurse call systems, enterprise reporting and analytics tools, for the purpose of improving patient outcomes and reducing cost for healthcare organisations. AHC is rated a Buy by Bell Potter’s analyst due to its strong revenue and earnings growth, underpinned by a scalable, modern nurse call platform (Tacera) and a >A$50m order backlog that provides clear near-term revenue visibility.