Skip to main content

Morning Bell 7 July

Sophia Mavridis
July 7, 2023

On Wall Street overnight, US equities closed in the red, with all three major benchmarks declining. This was after better-than-expected jobs data out in the US, raised concerns around the state of the economy and the path of interest rates. The S&P500 dropped 0.8% with all 11 industry sectors lower. Energy was down the most, while information technology was the best performer. The Dow Jones dropped more than 1%, marking the worst daily performance for the Dow and the S&P 500 since May. And the Nasdaq closed 0.8% lower. And the 2-year US Treasury yield hit a 16-year high.

European markets also sharply fell. The STOXX 600 tumbled 2.3%, again of the back of the US jobs report. Travel and leisure led the losses, followed by retail.

What to watch today:

  • Australian shares are set to sharply drop in line with losses across Europe and the US overnight. The SPI futures are suggesting a 1.26% fall at the open this morning.
  • In commodities,
    • Crude oil is in the green, regaining earlier losses after falling to as low as US$70, as growing concerns about a global economic slowdown and lower demand offset concerns over tight supply.
    • UK natural gas has dropped over 5%, extending its decline as markets assessed expectations of firm supply against rising demand.
    • Gold is at its lowest in nearly four months as evidence that the labour market remains tight strengthened the case for a hawkish Federal Reserve, which increased the opportunity cost to hold precious metals. So keep watch of gold miners such as Newcrest Mining (ASX:NCM) and Evolution Mining (ASX:EVN).
    • And iron ore remains close to a two-month high.

Trading Ideas:

  • Bell Potter maintains a Buy rating on Regal Partners (ASX:RPL), with the company expected to update the market on mid-year funds under management in mid/late July. They have increased their price target from $3.71 to $3.45, and at RPL’s current share price of $2.58 this implies 33.7% share price growth in a year.
  • And Trading Central has identified a bearish signal in OFX Group (ASX:OFX) indicating that the stock price may fall from the close of $1.90 to the range of $1.35 to $1.45 over 34 days, according to the standard principles of technical analysis.

Weekly Wrap 12 July

Grady Wulff
July 12, 2024

Morning Bell 11 July

Grady Wulff
July 11, 2024

Morning Bell 10 July

Grady Wulff
July 10, 2024

Morning Bell 9 July

Sophia Mavridis
July 9, 2024

Morning Bell 8 July

Grady Wulff
July 8, 2024

Weekly Wrap 5 July

Bell Direct
July 5, 2024

Morning Bell 4 July

Bell Direct
July 4, 2024

Morning Bell 3 July

Bell Direct
July 3, 2024

Morning Bell 2 July

Bell Direct
July 2, 2024

Morning Bell 1 July

Bell Direct
July 1, 2024

Weekly Wrap 28 June

Bell Direct
June 28, 2024

Morning Bell 28 June

Bell Direct
June 28, 2024