Market wraps 12th April 2024

Morning Bell - Sam Kanaan

Wall St closed higher overnight as tech shares climbed higher following concerns of persistent inflation. The S&P500 rallied 0.74%, the tech-heavy Nasdaq climbed 1.68% while the Dow Jones closed flat. In terms of US stocks, Nvidia jumped 4.1%, Amazon gained 1.7% and Alphabet ended the day more than 2% in the green.

Over in Europe, markets closed lower overnight after the European Central Bank held rates steady. The STOXX600 closed 0.4% lower with most sectors in the red including banks which lost 2.4. Germany’s DAX lost 0.79%, the French CAC lost 0.27% and over in the UK the FTSE100 fell nearly half a percent.

Locally yesterday, the ASX200 fell 0.44% with losses lead by the information technology and financial sectors, losing 1.71% and 1.3% respectively. This was offset by the material sector which gained 1.4% by market close.

What to watch today:

  • The Australian market is set to open lower, with the SPI futures suggesting a fall of 0.37% at market open this morning.
  • On the commodities front this morning,
    • Oil is trading 0.74% lower at US$85.58 a barrel, following hot inflation data coming out of the US.
    • Gold is trading 1.57% higher at US$2372 an ounce as investors react to the latest inflation data and the implications it will have on the Fed’s monetary policy.
    • And iron ore is trading 0.3% lower at US$104.02 a tonne.

Trading Ideas:

  • Bell Potter maintains a buy rating on Telix Pharmaceuticals (ASX:TLX) and has a 12-month price target of $14.50. The buy rating is maintained by Bell Potter as Telix has filed for a new investigational drug application for TLX591. TLX continues to pursue a NASDAQ listing primarily for the purpose of enabling better access to the deep pool of specialist investors focused on biotechnology and radiopharmaceuticals in the US. TLX591 is the first of the companies therapeutic products, hence there is a great deal riding on the opening of the investigational new drug.
  • And Trading Central has identified a bearish signal in NIB Holdings (ASX:NHF), indicating that the stock price may fall from the close of $7.70 to the range of $7.13-$7.23 on a pattern formed over 26 days, according to the standard principles of technical analysis.