Market wraps 14th October 2020
Morning Bell - Jessica Amir
After five days of straight gains, it looks like some profit taking is in order today. The futures are suggesting a fall of 0.9% today.
The reason sentiment is likely to be weak today is because global equities pulled back overnight with the UK recording its highest daily rise in COVID-19 deaths.
In the U.S., Johnson & Johnson’s COVID-19 vaccine study was paused due to an unexplained illness in a patient study, seeing J&J shares slide 2.3%.
What to watch today:
- The oil price gained 2% to US$40.17, while Gold fell about 2% to US$1,894.
- Afterpay (ASX:APT) received finalisations and clearance from AUSTRAC’s audit.
- Bank of Queensland (ASX:BOQ) reported its net profit fell 61%. Auckland International Airport (ASX:AIA) and Aurizon Holdings (ASX:AZJ) also report.
- AGMs today: CSL (ASX:CSL), Cleanaway Waste Management (ASX:CWY) and Aurizon Holdings (ASX:AZJ).
- Overnight, the International Monetary Fund (IMF) revised its global economic growth forecasts higher to a 4.4% contraction, up from negative 4.9% growth for 2020.
- Orica (ASX:ORI), a leading explosives manufacturer was reiterated as a Citi Buy with a new increased target of $19.50. Citi is expecting medium-term earnings growth underpinned by higher pricing, increased technology sales and better plant utilisation.
- Following Telstra’s (ASX:TLS) AGM yesterday UBS maintained Telstra as a Buy with $3.70 target.
- BCI Minerals (ASX:BCI), Silver Lake Resources (ASX:SLR) and Ramelius Resources (ASX:RMS) are all showing bullish charting signals - according to Trading Central.