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What happened the prior trading session

The local market advanced 0.6%, with nearly all sectors posting gains. The materials sector led the way, up an impressive 1.3%, while the financial sector was the only sector to post a loss.

ASX200 stock leaderboard

Travel stocks soared. Qantas (ASX:QAN) lifted 7%, its best performance since November 2020, as investors showed renewed confidence for this beaten down sector of the market.

Meanwhile, the worst performer was Bank of Queensland (ASX:BOQ), down 6.3%, after the company reported results that disappointed the market and included cautions about a squeeze on margins.

The most traded stocks by Bell Direct clients

  1. Uniti Group (ASX:UWL)
  2. National Australia Bank (ASX:NAB)
  3. Lake Resources (ASX:LKE)
  4. Bank of Queensland (ASX:BOQ)
  5. Regis Resources (ASX:RRL)
  6. Commonwealth Bank (ASX:CBA)
  7. NOVONIX (ASX:NVX)
  8. Pilbara Minerals (ASX:PLS)
  9. Amcor (ASX:AMC)
  10. Flight Centre (ASX:FLT)

What happened in global markets

It’s a big week of earnings for the market. Some big names reporting this week include Tesla, Netflix, United Airlines, Procter and Gamble, Johnson & Johnson, and American Express.

On Monday however, all three benchmarks closed slightly lower with rising commodity prices heightening concerns about inflation.

The 10-year Treasury yield also reached its highest level since late 2018, at one point trading at 2.8%.

What to watch today

  • Despite the US market slightly falling, the futures are suggesting that the Aussie market is set to open 0.13% higher this morning.
  • In commodities, the oil price rose off the back of outages in Libya deepening concerns over tight supplies.
  • The gold price hit a one-month high on Monday, nearly reaching the $2,000 an ounce level, as concerns around the Russia-Ukraine conflict and rising inflationary pressure increased the appeal of the safe-haven asset.
  • And the spot iron ore price is trading 2% higher at US$150 a tonne.
  • In economic news, the RBA will release its meeting minutes for April. The RBA noted that Australia’s inflation has increased, and a further increase was expected, however, the board said it wanted to see actual evidence that the price level is sustainably within the 2 to 3% target range before it considers increasing interest rates.
  • Lastly, chartered accounting network company, Kelly Partners Group (ASX:KPG) is set to go ex-dividend today.

Trading Ideas

  • Bell Potter have maintained its BUY rating on Allkem (ASX:AKE) with a trimmed price target, from $18.05 to $17.53. The global lithium miner reported a solid third quarter production update and Bell Potter expect AKE’s near term cash generation to lift substantially into 2023 as strength in lithium commodity indices flows through to lagged realised prices. Now AKE’s current share price is $13.52 so this implies about 30% share price growth in a year.
  • Trading Central has a bullish signal on drilling services company, DDH1 (ASX:DDH), indicating that the stock price may rise from the close of $1.07 to the range of $1.13 – $1.15 in the next 40 days according to standard principals of technical analysis.

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