Morning Bell 3 November

Sophia Mavridis
November 3, 2021

Yesterday, the ASX200 fell about 46 points in a volatile session. Real Estate shares rebounded, while Materials dropped the most. Goodman Group (ASX:GMG) advanced 5.6%, after a positive trading update. Whitehaven Coal (ASX:WHC) was the worst performer. Its shares fell alongside the price of Chinese thermal coal.

In New York overnight, the three major benchmarks closed at a record for the third session in a row. Investors are waiting on a key Federal Reserve decision.

Following US equities, the SPI futures are suggesting the Aussie share market will rise 0.97% at the open.

What to watch today:

  • In economic news, yesterday, the RBA held the cash rate at its record 0.10%. The RBA also discontinued its monetary policy measures, its yield curve control, and they will drop the 10-point target on the 3-year bond, expiring 2024.
  • Services PMI was released this morning for October, increasing to 52 from 45.5 in September. This indicates a return to expansion, after three months of contraction due to lockdown restrictions.
  • AGMs today include Domino’s Pizza (ASX:DMP), Worley (ASX:WOR), Cedar Woods Property (ASX:CWP) and Tyro Payments (ASX:TYR).
  • The most traded stocks by Bell Direct clients yesterday were Westpac (ASX:WBC) and Commonwealth Bank of Australia (ASX:CBA), as financials fell, and investors took profits.
  • Iron ore declined overnight, with BHP and Rio Tinto closing lower in both London and New York. Expect ASX-listed BHP and RIO to follow. The seaborne iron ore price is currently trading more than 3% lower at US$99.
  • Oil is also trading lower as markets await OPEC’s meeting. Spot gold is trading lower, below $1,790 amid a weaker dollar. And the coal price has tumbled 6%, as China aims to boost coal production.

Trading ideas:

  • Bell Potter have upgraded software design company Altium (ASX:ALU) from a HOLD to a BUY and have increased their price target by 31% to $42.50, taking into account earnings changes as well as market movements and time creep. ALU closed yesterday at $37.33, implying 13.8% share price growth in a year.
  • Bullish charting signals have been identified in Evolve Education Group (ASX:EVO), Aristocrat Leisure (ALL) and Australian Strategic Materials (ASX:ASM), according to Trading Central.

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