Market wraps 21st September 2021

Morning Bell - Jessica Amir

Investors are bracing for the US Central Bank meeting on Wednesday, with concerns the Fed will scale back stimulus.

There is worry China’s economy has reached its debt ceiling, as China’s biggest property developer is not able to pay its repayments. This is impacting Asian bank stocks and commodities.

The Aussie share market is set to open lower, with the futures suggesting a fall of 1.4%, following yesterday’s 2.1% drop. The market is 4% away from its August all time high.

What to watch today:

  • The US will open its border to fully vaccinated foreigners, and analysts expect the most upside in financials and industrials.
  • The iron ore price in China fell 8.8% to US$92.98. BHP and Rio Tinto listed in New York fell 2.9% as a result.
  • Copper fell to a one-month low, while gold rose slightly, and the oil price fell 2%, however is recouping its losses and now trading at US$70.70, its highest level since August.
  • In economic news, the RBA is set to release its meeting minutes at 11:30am AEST. The RBA announced earlier this month that stimulus will stop mid- February next year in line with the economic reopening.
  • In corporate news, Sigma Healthcare (ASX:SIG) and Kathmandu (ASX:KMD) are due to make announcements today.
  • Qube (ASX:QUB) goes ex-dividend today.

Trading Idea:

  • Citi upgraded Baby Bunting Group (ASX:BBN) to a BUY, rising its 12 month price target from $5.90 to $5.98.
  • Charter Hall (ASX:CLW) is a Citi BUY, given it’s set to buy ALE Property Group (ASX:LEP) for $1.68 billion. Citi cut its 12-month price target for CLW from $5.68 to $5.59.
  • Pentant (ASX:5GG), Emvision Medical Devices (ASX:EMV) and Meridian Energy (ASX:MEZ) are all giving off bullish charting signals, according to Trading Central.