Market wraps 6th October 2020
Morning Bell - Jessica Amir
Well after the ASX ended 2.5% higher yesterday, its best day since June 16 ahead of the budget boost. The Aussie market is likely to lift 0.4% today.
U.S. President Donald has been released from hospital and ahead of the news, U.S. markets rallied. Adding to that positive injection, U.S. lawmakers voted in favour of a $2.2 trillion Democratic coronavirus stimulus package. It now needs to pass through the Republican-held Senate to become law.
What to watch?
- The RBA meets - rates are tipped to remain on hold, with the RBA hinted there is no point in reducing rates as it would only accelerate Aussie’s saving more than spending, something that the pandemic has heighted.
- The Federal Budget will be handed down this evening – we’re expecting an extension of JobKeeper and JobSeeker, phased tax cuts, and an extra $40 billion in infrastructure.
- Keep an eye on commodity stocks as the oil price jumped 6% on stimulus hopes to US$39.
- Gold put on 0.6% to US$1,919.
- Mesoblast, (ASX:MSB) was maintained as a speculative Buy by Bell Potter, with a slimmer $7.00 target, implying 98% growth.
- Santos (ASX:STO) is a buy stock for UBS, Bell Potter, Credit Suisse, Morgan Stanley. STO is also a Citi buy with a $7.15 target.
- Wesfarmers (ASX:WES), Orbital Corp (ASX:OEC) and BetMakers Technology (ASX:BET) - are all showing bullish charting signals - according to Trading Central.