Market wraps 22nd July 2020

Morning Bell - Jessica Amir

The Aussie share market is eyeing a 1% fall at the open, following the 2.6% gain yesterday on the ASX which took the market to its highest level since the 6th of March. The Aussie futures are pointing to a dreary open despite European equities hitting four-month highs and U.S. equities mostly pushing higher.

Across the ocean, the European Union agreed to the 750 billion Euro recovery package.

What to watch today:

  • OZ Minerals (ASX:OZL) is due to report production numbers for the second quarter.
  • Washington lawmakers are coming under pressure to extend the $600 per week federal unemployment benefit ending at the end of September.

Local trading ideas:

  • Bell Potter reiterated Suncorp Group (ASX:SUN) as a buy with a $10.50 price target. Yesterday Suncorp Group closed 2.1% higher at $9.24. In terms of COVID-19 impacts, Suncorp expects these to be broadly neutral on FY20.
  • After BHP (ASX:BHP) handed down its quarterly report, UBS reiterated BHP as a buy with a $40 target. Yesterday BHP closed 1.1% up at $38.80. Overall with lower guidance for FY21 results, UBS forecast a 6% reduction in underlying earnings.
  • Footwear business Accent Group (ASX:AX1) is showing a bullish signal according to Trading Central’s charting. Accent Group is backed by Bell Potter as a buy with a $1.80 target given its online sales grew 150% from April to June.