Market wraps 11th March 2024

Morning Bell - Sam Kanaan

Wall St fell on Friday as the Dow Jones closed out its worst week since October losing 0.18% by the closing bell. The S&P 500 lost 0.65% and the tech-heavy Nasdaq fell 1.16%. US unemployment data was also released on Friday coming in at 3.9%, 0.2% higher than the forecast and consensus of 3.7%.

In terms of US stocks, despite rising 6% over the week, Nvidia lost 5% in its worst session since last May.

Over in Europe, markets closed mix following the European Central Bank’s inflation forecast and US jobs data release. The STOXX 600 closed 0.03% higher, led by the financial sector which gained 1%, whilst the technology sector lost 1.5%. Germany’s DAX closed 0.16% lower, as did the FTSE 100 which fell 0.43%, whilst the French CAC gained 0.15%.

Locally on Friday, the ASX200 gained over 1% with all but the industrial sector finishing in the green. Gains were led by the financial and health sectors up 2.03% and 1.25% respectively.

What to watch today:

  • The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.6% at market open this morning.
  • On the commodity front this morning,
    • Oil is down 1.17% to US$78.01 a barrel as the market remains cautious on Chinese demand, despite the OPEC+ group extending supply cuts.
    • Gold is up 0.9% to US$2178 and ounce and iron ore is trading 0.85% higher at US$118.50 a barrel.

Trading Ideas:

  • Bell Potter has maintained a buy rating on Develop Global (ASX:DVP), despite decreasing its price target to $4.10. The buy rating is maintained by Bell Potter as the forthcoming restart of Woodlawn operations coincides with growing revenue generation from the company’s underground mining services business, underpinning a ramp up in earnings in FY24-FY26.
  • And Trading Central has identified a bullish signal in Infomedia (ASX:IFM), indicating that the stock price may rise from the close of $1.65 to the range of $1.90-$1.96, on a pattern formed over 11 days, according to the standard principles of technical analysis.