The ASX200 is eyeing a fall of 0.4% at the open as investors weigh up that the NSW restrictions could shave 0.1% off this quarter’s economic growth according to Citi analysts.
Pfizer’s vaccine has been approved for use in the EU, while half a million people have already received the first dose of the vaccine in the UK. There are concerns that a new COVID-19 strain is in the UK and is spreading much faster, which has triggered more severe lockdowns and travel restrictions across Europe. Health authorities do say there is no evidence of a higher death rate in the new mutated strain.
In the US, Moderna is shipping its first batch of its vaccine.
US lawmakers agreed on a US$900 billion rescue package including direct payments of $600 to most adults and $600 per child.
What to watch today:
- Preliminary retail trade data is out today and is expected to show we spent 0.6% less in November. This comes after we splurged in October when retail trade rose 1.4%.
- Orica (ASX:ORI) holds its AGM today.
Local trading ideas:
- City Chic Collective (ASX:CCX) has announced the purchase of another distressed business. CCX will be entering the $9 billion UK market, after it inked a deal to buy 90-year Evans eCommerce and wholesale businesses. City Chic Collective is a Bell Potter buy and was given a new $4.10 target, which implies 16% upside in a year.
- Bell Potter upgraded Aeris Resources’ (ASX:AIS) price target to $0.12 and maintained its buy rating. Aeris Resources received higher than expected copper grades from its recent drilling in NSW and its shares charged over 5% yesterday.
- Bell Potter reiterated Nickel Mines (ASX:NIC) as a buy with a $1.49 target. NIC is also backed by Credit Suisse, Macquarie and Citi as a buy. Western Areas (ASX:WSA) is also a favoured nickel producer for Macquarie, Credit Suisse, and Citi.
- NRW Holdings (ASX:NWH), Jupiter Mines (ASX:JMS) and Praemium (ASX:PPS) are all showing bullish charting signals according to Trading Central.