Market wraps 27th July 2020
Morning Bell - Jessica Amir
The Aussie share market is eyeing a fall 0.5% at the open, following a red finish in the U.S. on Friday.
Gold prices hit brand new record highs of US$1,898, on the back of US-China tensions and lingering COVID-19 fears.
What to watch this week:
- The RBA Assistant Governor is speaking via webinar at 10am. Catch that on the RBA’s website.
- Australian inflation data will be released on Wednesday.
- U.S. GDP data will be released on Thursday.
- This week will be a really telling week for markets with Apple, Amazon and Facebook reporting results which will need to justify their record high valuations.
- Credit Corp (ASX:CCP) on Tuesday.
- Rio (ASX:RIO) on Wednesday.
- After Mineral Resources (ASX:MIN) shares rose about 47% this year, seeing minimal COVID-19 impacts and increasing its iron ore shipment by 53% in the year, Bell Potter downgraded the company from a buy to a hold, following its outperformance. However, Bell Potter also said there is uncertainty in the iron ore price, as well the increased tension with US/China that could weigh on Mineral Resources.
- UBS increased Insurance Australia’s (ASX:IAG) buy rating and price target to $6.50 with UBS being bullish on insurance premium rates. However, UBS downgraded IAG’s earnings for FY21E by -15%.
- Citi reiterated Aristocrat Leisure (ASX:ALL) as a buy with a $30 target.
- Citi picked Austal (ASX:ASB) as its key buy in the small caps with a $4.23 target.