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Wall St saw a mixed session overnight as the US – Iran war and oil price volatility continued to weigh on investors. The Dow Jones closed down 0.6%, the S&P500 inched down 0.1%, while the Nasdaq gained 0.1%.

What to watch today:

• Looking ahead to the today’s trade, the SPI futures indicate that our local market is poised for a drop at the open, suggesting a 0.5% pull back. Investors are largely reacting to the lack of a clear path to a resolution of the Iran conflict, as President Trump said yesterday that the US and Israel were not yet finished hitting Iran, while Iran itself listed 3 terms it would require for the war to end, including the payment of reparations.
• Moving over to commodities,
  • Crude Oil rebounded 6% to US$88 per barrel, despite the IEA confirming that they would release 400 million barrels from emergency reserves, its largest ever release. Even with the additional supply, the price will continue to stay high as long as the long term uncertainty remains.
  • Precious metals remain relatively stable, continuing the trend we have seen developing over the last few days.  Gold is trading just 0.2% down at US$5,180 per ounce, while silver is down 2.9% at a little under US$86 per ounce.

Trading ideas:

• Finally, we’ll end on some trading ideas for your consideration today. Bell Potter have upgraded their recommendation on Lynas Rare Earths (ASX:LYC) from a Sell to a Hold, with an upgrade on the 12 month price target from $11.60 per share to $19 per share. This comes after the company announced it had extended the Japan Australia Rare Earths offtake agreement to 2038, effectively guaranteeing revenue of around $775 million at the current exchange rate.
• And Bell Potter maintain their Buy rating on Telix Pharmaceuticals (ASX:TLX) with a 12 month target price also of $19 per share, off the back of yesterday’s announcement of successful phase 1 trials for its prostate cancer therapy.