Well markets rebounded overnight, after falling the session prior. On Wall Street, all three major benchmarks closed in positive territory. The Nasdaq and the S&P500 closed at their highest levels since August, up 1.28% and 1% respectively, while the Dow Jones gained 0.47%. The rally was off the back of the bill to raise the debt limit and cap government spending being passed in the House by a wide margin late Wednesday in the US, sending the bill to the Senate only days before Monday’s default deadline.
European markets also rallied, after having hit a two-month low. The STOXX 600 closed 0.8% higher, as almost all sectors gained. Mining stocks rose after Chinese factory activity beat expectations. Media stocks were also up, while household goods closed lower.
What to watch today:
- The SPI futures are suggesting that our local market will rise 0.66% at the open this morning.
- Local economic news out today includes home loan data for May, while tonight in the US the unemployment rate will be announced.
- In commodities,
- Oil is on the rise, currently trading more than 3% higher, recovering from earlier losses after touching a two-month low in the previous session, supported by a weaker US dollar and market relief, following the US debt ceiling negotiations. Also, OPEC+ is meeting this week, so markets are awaiting potential price-supportive measures.
- Natural gas has fallen to the lowest level in four weeks, driven by record US output, increased gas exports from Canada as well as a higher-than-expected storage build last week.
- The gold price is higher, while iron ore is holding close to a six-month low.
- Bell Potter maintain a Buy rating on AROA Biosurgery (ASX:ARX), a commercial stage medical device company that operates within the complex wound care and soft tissue reconstruction sector. They reported positive FY23 results, with revenue and EBITDA improvements. The FY23 performance was within guidance and largely in-line with Bell Potters forecasts. The price target is $1.45, and at the stock’s current share price of $0.92, this implies 58.5% share price growth in a year.
- And Trading Central identified a bullish signal in Pro Medicus (ASX:PME) indicating that the stock price may rise from the close of $61.65 to the range of $64.20 to $64.70 over 22 days, according to the standard principles of technical analysis.