Skip to main content

Morning Bell 7 December

Sophia Mavridis
December 7, 2023

US markets declined as investors assess data indicating falling inflation, while awaiting the latest employment report. The Dow Jones fell for the third consecutive session, down 74 points or 0.2%, while the S&P500 and the Nasdaq fell 0.4% and 0.5% respectively.

European markets closed higher, rebounding from mixed trade earlier in the week. Germany’s DAX extended gains to a record high. The STOXX 600 rose 0.6% by the close, with mining stocks turnaround sharply.

What to watch today:

  • The Australian share market is set to open lower this morning, with the SPI futures suggesting a drop of 0.39% at the open.
  • In commodities,
    • The price of oil has fallen, currently trading more than 4% lower at US$69 per barrel at the time of recording. It’s the lowest level since early July, due to demand worries and increased supply. The US Energy Information Administration reported that gasoline inventories in the US were up by 5.4 million barrels in the week ending December 1st, which is the largest increase in nine weeks and well above forecast of 1 million. This implies weaker demand and has seen the price of crude oil sharply drop, so keep watch of energy producers today such as Santos (ASX:STO) or Beach Energy (ASX:BPT). In addition, concerns on the economic outlook of China also appear to be weighing heavily on crude prices.
    • Meanwhile, gold and iron ore prices are in the green.
  • In economic data today, Balance of Trade data for October will be out today. Australia’s trade surplus on goods declined to a 30-month low in September, as exports fell while imports surged. October’s data will be out at 11:30am this morning AEDT.

Trading Ideas:

  • Bell Potter maintains a Buy rating on Aeris Resources (ASX:AIS), a multi-mine copper-gold production and exploration company. The company has undertaken a fully underwritten $30 million equity raising, via a $13.9 million institutional placement, and a $16.1 million pro-rata, accelerated non-renounceable entitlement offer, which will result in the issue of 273 million new shares at an offer price of $0.11. Washington Soul Pattinson is a major shareholder who are supportive of the raise. Bell Potter have lowered their price target from $0.30 to $0.23, and at the current share price of $0.11, this implies 109% share price growth in a year.
  • And Bell Potter have lowered their rating on Neuren Pharmaceuticals (ASX:NEU) from a Buy to a Hold, with no changes to their forecast or price target. Neuren is a drug development company and Bell Potter say that the clear upcoming catalyst is the Phase 2 trial for PMS. Their price target remains unchanged at $17.50 and at the current share price of $16.05, this implies 9% share price growth in a year.

Weekly Wrap 23 February

Grady Wulff
February 23, 2024

Morning Bell 22 February

Sam Kanaan
February 22, 2024

Morning Bell 21 February

Grady Wulff
February 21, 2024

Morning Bell 20 February

Grady Wulff
February 20, 2024

Morning Bell 19 February

Grady Wulff
February 19, 2024

Weekly Wrap 16 February

Sophia Mavridis
February 16, 2024

Morning Bell 16 February

Sam Kanaan
February 16, 2024

Morning Bell 15 February

Sam Kanaan
February 15, 2024

Morning Bell 14 February

Sam Kanaan
February 14, 2024