Good morning this Monday the 10th of
August, I'm Paulina Peters a market
analyst with Bell Direct,
covering for Jess today. The Aussie share
market is eyeing a lift of 0.7%
or 42 points, after global equities ended
mostly on positive ground on friday
as the U.S. reported early signs of an
economic recovery.
The U.S. economy added 1.8 million jobs
in July,
smashing through expectations that only
1.4 million people gained a job.
Meanwhile traders and investors looked
past the lack of fresh economic stimulus
with the White House and Democratic not
yet being able to agree on a new weekly
payment
to replace the $600 per week Federal
unemployment benefit
that expired at the end of July. The Dow
gained 0.2%
and the S&P500 rose ever so slightly
0.1%,
taking their winning streaks to six days.
While on the flip side the Nasdaq took
a breather from its smashing record high
falling 0.9%
ending seven days of gains with Amazon
and Microsoft falling about 1.8%
each,
while Apple lost 2.3% and Netflix lost
2.8%.
On the commodity front, the gold price
lifted 0.4%
to US$2,035 an ounce, but it
earlier hit another brand new record
high
of US$2,073 an ounce but couldn't
maintain momentum with traders quickly
clipping off profits.
The oil price lifted 0.9% to
US$41.55 a barrel,
a trading range it appears to be staying
around given fuel demand is low,
while U.S. energy companies continue to
cut supply
to a record low for the 14th week.
Earnings results are out today for
Aurizon Holdings (ASX:AZJ),
which just reported a 28%
jump in its net profit after tax in the
full year
and also launched a $300 million
buyback
to return equity to shareholders.
GPT Group (ASX:GPT) also handed down their results, reporting a $519.1 million
loss for the first half of the year, with its retail property valuations falling
10.5%
as at the 30th of June. And James Hardie
Industries (ASX:JHX) also reports their financial results today.
Now to finish on two trading ideas,
Flight Centre Travel (ASX:FLT) is showing a bullish signal
according to Trading Central’s charting. On Friday, Flight Centre closed 6.3%
up at $10.63 and Trading Central believes
FLT’s share price may rise to between $12.70 - $13.20
in 25 days according to standard principles of technical analysis.
And finally, UBS reiterated Insurance Australia Group (ASX:IAG)
as a buy with a $6.10 price target.
Despite IAG's outlook being impacted by headwinds,
UBS sees value in IAG. FY21 will be a tough year for underlying profits,
with recovery on the horizon post COVID-19.
That’s where IAG should have greater ability to restore profit growth,
through stronger repricing. So that’s IAG a UBS Buy.
I'm Paulina Peters with Bell Direct,
happy trading,
