BPO TV

US equity markets pulled back following the latest Federal Reserve FOMC minutes release. The minutes were as expected, with the Fed focused on inflation numbers rather than jobs data which is what the market and investors have been watching closely lately.

 While the Dow closed 0.4% higher, the S&P500 closed a 4-day loosing streak, down 0.24%. And a tech sell off saw the Nasdaq was down 0.67% in the red. We also saw a meaningful drop in bond yields overnight. 

 European markets were mixed overnight, the STOXX600 gained 0.23%, German DAX down  0.6%, France’s CAC down just 0.08% while the FTSE100 advanced 1.08%.

European defence stocks extended losses as the market regained optimism for an Ukraine ceasefire.Locally yesterday, the ASX200 gained 0.25% with consumer discretionary, real estate and financials in the lead. 

What to watch today:

• The Australian market is set for a positive start to the day. The SPI futures are suggesting a 0.26% rise at the open this morning.
• Supporting the market today will be a lift in energy prices as we saw in the US overnight. Looking at commodities:
   
  • Crude oil advanced 1.84% to US$62.94 per barrel, after a weekly report from the Energy Information Administration showed a 6 million-barrel decline in US crude inventories, providing modest support to prices. 
  • The price of gold gained 1% to trade at US$3,350.27 an ounce,after the FOMC minutes supported expectations of a September rate cut in the US and a softer US dollar, which boosted global demand.
  • Iron ore is slightly higher at US$101.52 per tonne, following reports that China will curb steel production.
• Locally, investors will be watching earnings from Whitehaven Coal (ASX:WHC), Bega Cheese (SSX:BGA), Brambles (ASX:BXB), and Goodman Group (ASX:GMG).
• AU$1.00 is buying US$0.64.

Trading ideas:

• Bell Potter maintains a Buy rating on Regal Partners (ASX:RPL) and maintain a 12-month price target of $3.55. At the current share price of $3.01, this implies 17.9% share price growth in a year.
• And Trading Central have identified a bearish signal in NextGen Energy (ASX:NXG) indicating that the stock price may fall from the close of $10.08 to the range of $8.50 to $8.80 over 51 days, according to the standard principles of technical analysis.