14th March 2024

Morning Bell - Sophia Mavridis

US markets closed mixed overnight, with the Dow Jones closing slightly higher, just 0.1% in the green, while the S&P500 closed 0.2% lower and the Nasdaq down 0.5%, as the information technology sector slipped 1.1% with Nividia, Meta and Apple shares all lower.

The US consumer price index, a broad measure of goods and services costs, increased 0.4% for the month and 3.2% from a year ago. The monthly measure was in line with expectations while the 12-month reading was slightly higher.

European markets ended higher, following what was a mixed trading session, as investors considered the latest U.S. inflation data as well as U.K. gross domestic product. GDP increased 0.2% in line with forecasts.

What to watch today:

  • The Australian share market is set to open higher this morning, with the SPI futures suggesting a rise of 0.28%.
  • In commodities,
    • The price of oil is up 2.7% to US$79 per barrel after US data saw an unexpected decrease in crude stocks.
    • Gold has advanced 0.8% after losing for than 1% in the previous session, amid US inflation data being released.
    • And iron ore is also in the green, trading at US$111 per tonne, so keep watch of iron ore miners.
  • And some companies set to go ex- dividend today include Breville Group Ltd (ASX: BRG), auto retailer Eagers Automotive (ASX: APE), poultry producer Inghams Group Ltd (ASX: ING), and telco TPG Telecom Ltd (ASX: TPG).

Trading Ideas:

  • Bell potter maintains a Speculative Buy rating on Liontown Resources (ASX:LTR) after the mining company accounted that it has executed a $550 million senior secured syndicated debt facility, funding its Kathleen Valley lithium project to first production. The Kathleen Valley project remains highly strategic in its stage of development, long mine life and location. And Bell Potter recognise the higher level of risk with their Speculative risk rating as it's an asset development company. They have lifted their valuation from $1.60 to $1.90 per share, and at LTR's current share price of $1.39, this implies 36% share price growth in a year.
  • And Trading Central have identified a bullish signal in Resimac Group (ASX:RMC), indicating that the stock price may rise from the close of $0.98 to the range of $1.24 - $1.30 over 26 days, according to the standard principles of technical analysis.