Market wraps 7th October 2020
Morning Bell - Jessica Amir
The Aussie market looks set to open 0.3% lower. U.S. President Donald Trump announced that the White House will halt negotiations of a further stimulus package until after the election. The U.S. market was initially marching forth until his announcement, then began to wipe out some of the prior day's gains.
- Oil jumped 1.8% to US$39.91.
- Gold eased from its two-week high, falling about 2% to US$1,882.
What to watch today:
- The focus will be on the budget and how investors and businesses will react.
- For individuals: low and middle-income earners will be entitled to a tax offset of up to $2,745.
- Wage subsidies: employers will get $200 a week for hiring people under 30 and $100 a week for hiring people between 30 and 35, and they must work at least 20 hours a week.
- Businesses with > $5 billion turnover: ability to buy and write off the entire cost of any depreciating asset they buy before June 30, 2022.
- Infrastructure: $3 billion will go to shovel ready infrastructure projects.
- UBS maintained BHP (ASX:BHP) as Buy stock, with a $41 target. After the mining giant announced it’s buying an extra 28% stake in oil assets in the deep-water Gulf of Mexico assets for US$505 million, which will take its holding to 72%.
- Whitehaven Coal (ASX:WHC) and Coronado Global Resources (ASX:CRN) were both reiterated as Bell Potter Buy's, but both had their price targets reduced amid a damper coal price outlook.
- Northern Star (ASX:NST), Saracen Minerals (ASX:SAR) and Resimac Group (ASX:RMC) are all showing bullish charting signals - according to Trading Central.