Market wraps 8th February 2024

Morning Bell - Sam Kanaan

Wall St closed higher overnight as investors react to further earnings season results. The S&P 500 rose 0.82%, edging closer to the 5000 level, the Dow Jones gained 0.4% and the tech-heavy Nasdaq rallied nearly 1%.

In terms of US stocks Microsoft and Nvidia added 2% each with Alphabet and Amazon rising by 1% each.

Over in Europe, markets closed lower following uncertainty over the rate cut outlook. The STOXX600 closed 0.3% lower with most sectors finishing the trading session lower. Oil and gas stocks were down 1%, with auto stocks up half a percent. Germany’s DAX fell 0.65%, the French CAC lost 0.36% and over in the UK the FTSE100 ended the trading session 0.65% lower.

Locally yesterday, markets closed 0.45% higher, with gains led by the utilities and real estate sectors of 1.74% and 1.11% respectively. This was slightly offset by the energy sector which retreated 0.95%.

What to watch today:

  • The Australian share market is set to open flat at market open this morning.
  • On the commodities front this morning,
    • Oil is trading 1.03% higher at 74 US dollars and 7 cents a barrel as investors continue looking at the situation in the Middle East.
    • Gold is trading flat at 2035 US dollars and 15 cents an ounce as investors await for further clues regarding monetary policy.
    • And iron ore is trading 1.53% lower at 128 US dollars and 50 cents a tonne

Trading Ideas:

  • Bell Potter maintains a buy rating on Australian Agricultural Co. (ASX:AAC) and has increased its 12-month price target to $2. The buy rating is maintained as cattle prices have rebounded strongly and US meat pricing indicators remain fairly firm. AAC is trading at a 40% discount, despite a 50% rally in the heavy steer indicator and an 87% rally in the EYCI post balance date.
  • And Trading Central has identified a bullish signal on Austal Ltd (ASX:ASB), indicating that the stock price may rise from the close of $2.10 to the range of $2.37-$2.45 on a pattern formed over 33 days, according to the standard principles of technical analysis.