Skip to main content

Morning Bell 6 December

Sophia Mavridis
December 6, 2022

US equities declined overnight, with the Dow dropping by 526 points or 1.5%, while the S&P500 and the Nasdaq fell by 2% and nearly 2.3%, respectively. While equities fell, bond yields pushed higher, with the yield on the benchmark 10-year Treasury last trading up 10 basis points.

Big movers overnight were Microsoft, Amazon and Netflix which all closed lower on growth concerns. Tesla shares also dropped about 7% on reports of an output cut at its Shanghai factory.

In Europe, markets closed fixed, with the FTSE 100 closing in the green, while the other major benchmarks were lower. Oil prices turned negative in late afternoon trade in Europe as OPEC stuck to its policy of lowering oil production and as China relaxed some of its COVID rules. The alliance of OPEC and non-OPEC producers agreed to stay the course on output policy ahead of the EU’s ban on importing Russian crude that came into force yesterday.

What to watch today:

  • The Australian market is set to open lower ahead of the final RBA policy meeting of the year, with the SPI futures suggesting a fall of 0.67% at the open.
  • The RBA will announce the next interest rate decision at 2:30pm AEDT. The cash rate is currently at 2.85%, and the market is expecting an increase to over 3%, which will be the eighth consecutive increase and will lift the cash rate to its highest level in 10 years.
  • In other economic news, the ABS will release Q3 data on Australia’s current account surplus, which last jumped to $18.3 billion in Q2. And US trade balance data for October will be out tonight.
  • In commodities,
    • Oil is trading over 3.5% lower at around US$77 per barrel, which is a dramatic reversal from its daily highs of around US$82. Investors grew risk averse, which boosted the US dollar but hurt equities, and made the commodity more expensive for holders in other currencies.
    • Gold is down 1.65%, falling from a 5-month high as the US dollar and Treasuries lifted.
    • While iron ore is trading over 1% in the green, the highest since late August as eased COVID curbs and measures to stimulate China’s economy has increased expectations for higher demand.
  • Watch the Bank of Queensland (ASX:BOQ) today as the company is set to hold its AGM.

Trading Ideas:

  • Bell Potter maintain a Speculative Buy rating on Strike Energy (ASX:STX) with a $0.42 valuation. At its current share price of $0.32, this implies 29% share price growth in a year.
  • Trading Central have identified a bullish signal in BetMakers Technology (ASX:BET) indicating that the stock price may rise from the close of $0.32 to the range of $0.37 to $0.39, over 30 days according to the standard principles of technical analysis.

Morning Bell 28 August

Bell Direct
August 28, 2024

Morning Bell 27 August

Bell Direct
August 27, 2024

Morning Bell 26 August

Bell Direct
August 26, 2024

Weekly Wrap 23 August

Bell Direct
August 23, 2024

Morning Bell 22 August

Grady Wulff
August 22, 2024

Morning Bell 21 August

Bell Direct
August 21, 2024

Morning Bell 20 August

Bell Direct
August 20, 2024

Morning Bell 19 August

Bell Direct
August 19, 2024

Weekly Wrap 16 August

Bell Direct
August 16, 2024

Morning Bell 15 August

Bell Direct
August 15, 2024