Insights 11th April 2023

Morning Bell - Sophia Mavridis

It was a mixed session on in New York ahead of key inflation data and quarterly bank reports out this week. Tech stocks struggled to make gains, with shares of Apple falling 1.6% and Alphabet falling 1.8%. The Nasdaq closed in the red, while the Dow and the S&P500 advanced.

What to watch today:

  • To start the trading week after we return from the Easter long weekend, the Australian market is set to open 0.3% lower this morning.
  • In commodities,
    • Oil prices have taken a downward turn amid renewed concerns that a potential global recession would weaken demand, and this offset the bullish bets around tighter global supplies.
    • The price of gold is also lower, retreating slightly from its one-year high, as the US dollar gained some ground after the US non-farm payrolls report pointed to a tight labour market. The report also supported bets for another interest rate hike form the Fed in May.
    • Iron ore continues to fall, reaching the lowest in three months, due to weak demand at the beginning of China’s construction season.
  • In economic data today, Westpac will release its data on consumer confidence for April, and NAB will release its data on business confidence for March.

Trading Ideas:

  • Bell Potter have re-initiated coverage on Alicidion (ASX:ALC), an Australian healthcare informatics company. Bell Potter have a speculative buy rating on ALC and a valuation of $0.20 per share. At the current share price of $0.12, this implies 73.9% share price growth in a year.
  • Trading Central have identified a bullish signal in Jumbo Interactive (ASX:JIN), indicating that the stock price may rise from the close of $13.43 to the range of $13.80 to $13.95 over 19 days, according to the standard principles of technical analysis.