Market wraps 7th January 2021

Morning Bell - Jessica Amir

The Aussie share market is eyeing a lift at the open of around 1.5% to 6,642. This follows a strong night of trade over on Wall Street after the Democrats came close to taking control of the Senate. Both the Dow and the S&P500 hit record highs with the Dow rising more than 400 points, as investors flocked to financial and industrial stocks on bets that the Democratic sweep in Georgia would result in more stimulus for the economy.

However, the gains were held in check after armed protestors overran the Capital building during the Electoral College vote count. The breach stopped the formal congressional count of President elect Joe Biden’s presidential election victory over Trump.

What to watch today:

  • Locally, both Balance of Trade and building approvals data for November will be released.
  • The Aussie dollar broke through US78c for the first time since March 2018.

Local trading ideas:

  • National Tyre & Wheel (ASX:NTD), Mineral Commodities (ASX:MRC) and EMvision Medical Devices (ASX:EMV) are giving off strong bullish charting signals according to Trading Central.