The Aussie share market should see a lift of 0.7% at the open, making a nice addition to yesterday 1.8% gain.
Wall Street had another smashing night with the benchmark S&P500 and tech-heavy NASDAQ hitting brand new record highs.
The AUD fell to 73.35 U.S. cents, dragged by weaker than expected Aussie GDP data yesterday.
What to watch today:
- After learning the Aussie economy shrank 7% from April to June, more than the 6% forecast, the Tourism Minister is now pressuring states and territory to open their boarders, saying the government will lose $55 billion this year if borders remain shut.
- On an economic front, import and export data is out for July, known as the balance of trade. The market is expecting a $5.4 billion surplus, meaning we’re expected to see more goods exported.
- Companies to keep an eye on: Fortescue Metals (ASX:FMG), BHP (ASX:BHP), Rio Tinto (ASX:RIO) and CSL (ASX:CSL).
- This evening in the U.S., import and export figures for July will be released.
Local trading ideas:
- Afterpay (ASX:APT) had its buy rating upgraded by Bell Potter, giving it a price target of $99.10, implying 20% share price growth from yesterday’s close of $82.50.
- Midway (ASX:MWY), Australia’s biggest Woodfibre processor and exporter, was given a sharp upgrade from a hold to a buy by Bell Potter with a $1.25 price target, implying 36% share price growth. Midway was upgraded following its improvement in cashflows, reduction in debt, and that pulp prices reached the bottom of their cycle.
- Boral (ASX:BLD), Australia’s largest supplier of building and construction materials was reiterated as a UBS buy with a $4.30 price target.