Market wraps 18th December 2020
Morning Bell - Jessica Amir
The ASX200 is eyeing a flat open.
U.S. investors looked past weaker than expected economic news overnight with unemployment claims rising more than expected, and instead focused on a potential rescue package being agreed on before the end of the year.
Congressional leaders have said they’re close to agreeing on a $900 billion stimulus deal that includes direct payments to individuals.
Copper rose 1.2% to its highest level since February 2013. What’s key is that iron ore, nickel and copper are likely to move higher given rising Chinese demand and fiscal stimulus in China.
What to watch today:
- Sydney Airport (ASX:SYD) reports traffic numbers. Auckland International Airport (ASX:AIA) reported domestic travel in NZ is now at 90% of pre-COVID-19 levels.
- NAB (ASX:NAB), Incitec Pivot (ASX:IPL) and Nufarm (ASX:NUF) hold their AGMs today.
Local trading ideas:
- Bapcor (ASX:BAP) was upgraded by Citi following its market update yesterday. BAP was maintained as a buy with an increased target of $8.85. Citi expects FY21 profits to be $115 million, which would be 4.5% growth from last year.
- Doctor Care Anywhere (ASX:DOC) was initiated as a Bell Potter buy with a $1.95 price target.
- Codan (ASX:CDA), Nick Scali (ASX:NCK) and Netwealth (ASX:NWL) are all showing bullish charting signals according to Trading Central.