Market wraps 8th December 2021
Morning Bell - Sophia Mavridis
Yesterday the market closed higher for the third straight session, advancing 0.95%. Apart from utilities, every other sector moved higher. Energy led the gains, rising more than 2%.
Tech stocks rebounded, with Zip Co (ASX:Z1P), Nearmap (ASX:NEA), and Tyro Payments (ASX:TYR) all making the top 10.
Travel stocks also rebounded as investors grow more confidence that the new COVID-19 Omicron variant wouldn’t have a devastating impact. Corporate Travel Management (ASX:CTD) and Flight Centre (ASX:FLT) made the leaderboard, posting gains of over 5%, while Qantas (ASX:QAN) and Webjet (ASX:WEB) also moved higher.
Magellan Financial Group (ASX:MFG) was the worst performer yesterday, after the news that their CEO Brett Cairns will be leaving the company after 14 years.
US equities rallied overnight, and all three major benchmarks closed in the green. The Dow Jones gained 1.4%, and the S&P500 gained 2.07%. The Nasdaq had its best day since March, gaining 3%, with tech stocks leading the market higher for a second day.
Following New York, the ASX200 is set to rise 0.3% at the open this morning, going by the SPI futures.
What to watch today:
- Tech stocks are likely to do well today, following the tech rally in the US.
- National Bank of Australia (ASX:NAB) may be under pressure as they face court action. The Financial Services Union is taking the bank to Federal Court, amid claims their staff are overworked.
- The oil price is trading more than 3% higher at US$71 per barrel.
- Gold is currently higher, above US$1,780 an ounce.
- The seaborne iron ore price is trading over 4% higher at US$108 a tonne.
- Bell Potter maintain their BUY rating on The a2 Milk Company (ASX:A2M) with a $7.70 price target. Bell Potter believe EPS could double by FY26, if the company can execute on the China offline expansion strategy, while recovering a 50% sales loss for FY20-21 in English label infant milk formula. A2M is also a Citi and UBS BUY. And the stock closed yesterday at $5.61, implying 37.3% share price growth in a year.