Ongoing positive momentum for equities, both locally and internationally, suggests fresh record highs are next. February reporting season anyone?
| World Overnight | |||
| SPI Overnight (Mar) | 7044.00 | + 36.00 | 0.51% |
| S&P ASX 200 | 7064.10 | + 22.30 | 0.32% |
| S&P500 | 3329.62 | + 12.81 | 0.39% |
| Nasdaq Comp | 9388.94 | + 31.81 | 0.34% |
| DJIA | 29348.10 | + 50.46 | 0.17% |
| S&P500 VIX | 12.10 | – 0.22 | – 1.79% |
| US 10-year yield | 1.84 | + 0.03 | 1.49% |
| USD Index | 97.64 | + 0.60 | 0.62% |
| FTSE100 | 7674.56 | + 64.75 | 0.85% |
| DAX30 | 13526.13 | + 96.70 | 0.72% |
Greg Peel is still on holidays. In the meantime, Jessica Amir from Bell Direct is providing a snapshot of insights and developments from overseas markets overnight.
By Jessica Amir, Bell Direct
Despite Australia’s intense environment, the Australian share market looks set to extend its record run following strong global leads.
US and European equities rose to new heights on Friday with China’s industrial production rising 6.9% over the year, which is more than expected. The tiger economy’s GDP grew 6.1% in 2019, matching forecasts.
The Aussie futures are eyeing a 0.5%/36-point lift at the open. Last week, the ASX200 rose 0.3%/22 points on Friday, rising 1.95% over the week, ending at 7,064 points. Month to date the index added 5.9%, which is its best monthly gain since July 2016, even though the month has not wrapped up.
With profit season to kick off here next month, and the looming US presidential election and phase two of the trade deal unknown, we are expecting uncertain times and volatility, with late cycle sectors and non-discretionary stocks to continue to outperform as rates drop to stimulate our sluggish economy while property values rise.
On Friday in the US, the blue-chip index the Dow Jones rose 0.2%/50 points, the S&P500 rose 0.4% closing at 3,330 points, while Nasdaq advanced 0.3%. Over the week, the Dow rose 1.8%, the S&P500 added 2% and the Nasdaq rose 2.3%.
Across the Atlantic, European stocks closed higher; with the Stoxx 600 up 0.96%, UK’s FTSE rising 0.85%, the French CAC lifting 1.02% and the Germany DAX adding 0.72%.
Gold is steady US$1,560 an ounce.
Oil is also steady at US$58.54 a barrel.
Iron ore trades 0.28% higher at US$94.81 a tonne
Australian dollar is buying 68.73 US cents.
What else to watch today?
- Sydney Airports. It reports its December 2019 sales.
- Nufarm, following its price downgrade by Bell Potter, which dropped its 12-month price target to $5.45 from $5.80.
- Amcor, following Credit Suisse upgrading the stock by 4.8%, with a 12-month price target of $16.25.
| Spot Metals,Minerals & Energy Futures | |||
| Gold (oz) | 1556.70 | + 3.40 | 0.22% |
| Silver (oz) | 18.00 | + 0.08 | 0.45% |
| Copper (lb) | 2.83 | – 0.00 | – 0.04% |
| Aluminium (lb) | 0.81 | + 0.00 | 0.28% |
| Lead (lb) | 0.90 | – 0.00 | – 0.52% |
| Nickel (lb) | 6.28 | + 0.08 | 1.21% |
| Zinc (lb) | 1.10 | + 0.02 | 1.46% |
| West Texas Crude | 58.54 | + 0.02 | 0.03% |
| Brent Crude | 64.85 | + 0.23 | 0.36% |
| Iron Ore (t) futures | 95.75 | + 0.50 | 0.52% |
| BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
| BPT | BEACH ENERGY | Downgrade to Hold from Accumulate | Ord Minnett |
| DHG | DOMAIN HOLDINGS | Downgrade to Sell from Neutral | UBS |
| FMG | FORTESCUE | Downgrade to Hold from Buy | Ord Minnett |
| FXL | FLEXIGROUP | Upgrade to Buy from Neutral | UBS |
| IGO | INDEPENDENCE GROUP | Downgrade to Lighten from Hold | Ord Minnett |
| IPL | INCITEC PIVOT | Upgrade to Equal-weight from Underweight | Morgan Stanley |
| MFG | MAGELLAN FINANCIAL GROUP | Downgrade to Underperform from Neutral | Macquarie |
| MOZ | MOSAIC BRANDS | Downgrade to Hold from Add | Morgans |
| MP1 | MEGAPORT | Downgrade to Hold from Accumulate | Ord Minnett |
| Downgrade to Neutral from Buy | UBS | ||
| MTS | METCASH | Upgrade to Neutral from Underperform | Credit Suisse |
| OGC | OCEANAGOLD | Upgrade to Buy from Accumulate | Ord Minnett |
| ORE | OROCOBRE | Downgrade to Sell from Hold | Ord Minnett |
| PDL | PENDAL GROUP | Downgrade to Hold from Add | Morgans |
| PRU | PERSEUS MINING | Upgrade to Outperform from Neutral | Macquarie |
| Downgrade to Underperform from Outperform | Credit Suisse | ||
| PTM | PLATINUM | Downgrade to Underperform from Neutral | Macquarie |
| QBE | QBE INSURANCE | Upgrade to Outperform from Neutral | Credit Suisse |
| SBM | ST BARBARA | Upgrade to Buy from Accumulate | Ord Minnett |
| STO | SANTOS | Downgrade to Hold from Add | Morgans |
| SUL | SUPER RETAIL | Downgrade to Hold from Accumulate | Ord Minnett |
| WHC | WHITEHAVEN COAL | Upgrade to Hold from Lighten | Ord Minnett |
