The Aussie share market is eyeing a fall 0.5% at the open, following a red finish in the U.S. on Friday.<\/p>\n
Gold prices hit brand new record highs of US$1,898, on the back of US-China tensions and lingering COVID-19 fears.<\/p>\n
What to watch this week:<\/p>\n
Reporting season:<\/p>\n
Trading ideas:<\/p>\n
Good morning, thanks for your company this Monday the 27th of July.<\/p>\n
I’m Jessica Amir, a market analyst with Bell Direct.<\/p>\n
Well gold prices have hit brand new record highs US$1,898 an ounce on the back of US-China tension and lingering COVID-19 pandemic fears.<\/p>\n
Now this means stocks like Newcrest Mining (ASX:NCM<\/a>), Northern Star Resources (ASX:NST<\/a>), Evolution Mining (ASX:EVN<\/a>) and Saracen Minerals (ASX:SAR<\/a>) could claw back some of Friday’s losses, so keep an eye on that.<\/p>\n Meanwhile, the oil price rose 0.5% to US$41.29, which should boost sentiment for local oil players today too.<\/p>\n Now this week will be a very telling week for markets in fact with Apple, Amazon and Facebook reporting results which will need to justify their record high valuations.<\/p>\n Meanwhile, the Federal Reserve meets and GDP data will be out in the U.S. on Thursday and locally, Australian inflation data will be released on Wednesday, inflation is currently at 2.2% annually, that’s within the RBA’s target range of 2%-3%.<\/p>\n Now looking to markets, the Aussie share market is either 0.5% or 27.4 points, following a red finish in the U.S. with equities falling for the first time in weeks, also weighing on sentiment is the fact that U.S. futures are suggesting a negative open when trade resumes.<\/p>\n On Friday Intel a top 30 company fell 16% after giving disappointing guidance for the next quarter and big tech names followed, while Tesla shares dropped 6%.<\/p>\n Now this saw the Nasdaq, as for the main indices, fall the most.<\/p>\n The Nasdaq lost 0.9%, the Dow lost 0.7% and the S&P500 fell 0.6%.<\/p>\n So what to watch today locally, well firstly the RBA Assistant Governor is speaking at a webinar at 10am, you can catch that on the RBA’s website and reporting season really it starts to show its feathers, tomorrow Credit Corp (ASX:CCP<\/a>) reports results and Rio Tinto (ASX:RIO<\/a>) reports results on Wednesday.<\/p>\n Now to trading ideas, well after Mineral Resources (ASX:MIN<\/a>), after their shares rose 47% so far this year, a cracking year, seeing minimal COVID-19 impacts and increasing their iron ore shipments by 53%, Bell Potter has downgraded MIN from a buy to a hold, following its out performance.<\/p>\n However, Bell Potter also said that there’s uncertainty about because of the iron ore price as well as increased tensions simmering between the U.S. and China.<\/p>\n Now this could weigh on MIN, downgraded to a hold.<\/p>\n Secondly, UBS increased Insurance Australia’s (ASX:IAG<\/a>) buy rating and price target to $6.50, with UBS being bullish on Insurance premium rates.<\/p>\n However, UBS did downgrade IAG’s earnings for FY21 by 15%. At the same time, Bell Potter downgraded IAG from a buy to a hold, with a less bullish price target $5.85, expecting no final dividend to be declared when they hand down the results on the 7th of August.<\/p>\n Citi reiterated Aristocrat Leisure (ASX:ALL<\/a>) as a buy with a $30 target.<\/p>\n Lastly, Citi’s picked Austal (ASX:ASB<\/a>) as its key buy in the small cap space with a $4.23 target.<\/p>\n