Market wraps 26th April 2024

Morning Bell - Sam Kanaan

Wall St closed lower overnight after the latest economic data showed a slowdown in growth, pointing to persistent inflation. The Dow Jones closed nearly 1% lower, the S&P500 closed 0.46% in the red and the tech-heavy Nasdaq fell 0.64%. US GDP data was released overnight, coming in at 1.6% in the first quarter which was lower than the forecast of 2.4%. Inflation data also increased at a 3.4% pace, above the previous quarters 1.8% advance.

Over in Europe, markets closed lower as investors react to the latest set of earnings. The STOXX600 closed 0.6% lower with the majority of sectors closing in the red with industrial stocks falling 1.9% whilst healthcare added 0.2%. Germany’s DAX fell 0.95%, the French CAC lost 0.93%, whilst over in the UK, the FTSE100 ended the trading session nearly half a percent in the green.

And locally yesterday, markets were closed for the ANZAC Day public holiday.

What to watch today:

  • The Australian market is set to open lower, with the SPI futures suggesting a fall of 0.34% at market open this morning.
  • On the commodities front this morning,
    • Oil is trading 1.29% higher at 83 US dollars and 77 cents a barrel following US crude inventories falling by 3.37 million barrels last week.
    • Gold is trading 0.7% higher at 2332 US dollars an ounce and iron ore is trading 0.43% higher at 109 US dollars and 23 cents a tonne.

Trading Ideas:

  • Bell Potter has maintained a buy rating on Beach Energy (ASX:BPT) and has a 12-month price target of $1.80. The buy rating is maintained by Bell Potter as BPT is rolling-off peak capex into a step-change in production and free cash flow in FY25-26. The company has retained a strong balance sheet capable of supporting the group’s progressive dividend policy. With a positive view on Australian east coast gas and LNG markets, and a strong production and earnings growth outlook, a buy rating is maintained.
  • And Trading Central has identified a bullish signal on NextGen Energy (ASX:NXG), indicating that the stock price may rise from the close of $12.10 to the range of $13.70-$14.00, on a pattern formed over 15 days according to the standard principles of technical analysis.