Between the Bells

Last Friday, we saw the Aussie share market fall 2.3%, its biggest, single-day decline in two weeks and largest weekly loss since October 2020. It was a very broad selloff, with all sectors closing in the red.

Boral (ASX:BLD) was up 2% despite no news out from the company. Some mining stocks also performed well, including Gold Road Resources (ASX:GOR) and Northern Star Resources (ASX:NST).

Meanwhile, Paladin Energy (ASX:PDN) fell a hefty 11% and Zip (ASX:Z1P) continued to come under pressure, falling 7.8%, now at a 52-week low of $3.33. 

The most traded stocks by Bell Direct clients last Friday included BHP (ASX:BHP) which fell 4.8% last Friday, despite the company announcing the completion of the shareholder vote on its unification. BHP will now seek approval from the UK courts. And if everything goes to plan, the unification will be complete on the 31st of January, meaning its UK-listed shares will stop trading at the close of trade next Friday, the 28th of January. 

In the US, all three benchmarks lost ground, the Nasdaq down the most, falling 2.7%. That it’s biggest weekly loss since October 2020. The Dow fell 450 points and the S&P500 slid 1.9%. This week, all eyes will be on Apple, Microsoft, and Tesla, who are set to post their earnings, as well as the Fed who will hold their two-day meeting in the middle of the week where conversations around rates will be important for the market to digest.

Following the negative session in the US, the futures are suggesting the Aussie share market will open 0.69% lower this morning. 

What to watch today:

• Fortescue Metals (ASX:FMG), following its late announcement last Friday that revealed the company had signed an agreement with China’s state-owned Sinosteel.
• South32 (ASX:S32) and Pilbara Minerals (ASX:PLS) will release their Q4 production reports. 
• Economic news wise, the manufacturing and services flash PMI will be released this morning. 
• Oil prices fell for the second day in a row on Friday, following an unexpected rise in US crude and fuel inventories, while investors took profits after both benchmarks touched seven-year highs earlier in the week.
• The gold price fell slightly to US$1,834 per ounce. 
• And the lithium price lifted 2.4% to a record high. 
• Capital market company, Mirrabooka Investments (ASX:MIR) and Thorn Group (ASX:TGA) are going ex-dividend today. 

Trading Ideas:

• Bell Potter has maintained its BUY recommendation on metallurgical coal producer, Coronado Global Resources (ASX:CRN) with a price target of $1.70. Bell Potter believe CRN is highly leveraged to the current strength in seaborne and US domestic met coal markets and is now generating significant free cash flow. 
• Trading Central has a bullish signal on manganese producer Element 25 (ASX:E25). This signal indicates that the stock price may rise from the close of $1.47 to the range of $1.92 - $2.02 in the next 10 days, according to standard principles of technical analysis. 

The Aussie share market declined 0.7% this week (Mon-Thu), weighed down by the tech sector. Meanwhile, the energy, materials and the consumer discretionary sectors were in the green.
 
 In this week’s wrap, Sophia covers: 

• (0:34) HUB24 (ASX:HUB) advancing after its positive Q2 update
• (1:29) BrainChip (ASX:BRN) continuing to shine, up 30%
• (1:50) The stocks Bell Direct clients were trading this week
• (2:12) What's happening in the lithium market, plus stocks to watch
• (4:54) Four important economic news items coming up 

Yesterday the Aussie share market followed Wall Street’s lead, closing 1% lower, with the tech sector weighing down on the market the most. All four of the banks closed lower, with CBA posting the biggest loss, down 1.5%. Only the energy and utilities sectors managed to post small gains.  

On the ASX200 stock leaderboard, the best performing stock was artificial intelligence company, Appen (ASX:APX), up 3.9%. Harvey Norman (ASX:HVN) also performed well, gaining 3.2% after Credit Suisse upgraded the stock from neutral to outperform with a 3% increase in its price target to $5.62.  Meanwhile, Megaport (ASX:MP1) came under pressure yesterday, amid broad weakness in the tech sector, but also as investors were underwhelmed by its second quarter results update. The company reported a quarter-on-quarter increase of just 7% in its monthly recurring revenue (MRR) to $9.2 million. Some of the other worst performers included NOVONIX (ASX:NVX) and Allkem (ASX:AKE).

The most traded stocks by Bell Direct clients yesterday, once again software company, BrainChip (ASX:BRN) has made the list. The company is up a massive 213% so far this year, and pushed higher yesterday, following the announcement of another granted patent. The company now holds a significant market cap of over $3.5 billion. Other top traded stocks included Lake Resources (ASX:LKE), Fortescue Metals (ASX:FMG), CSL (ASX:CSL) and James Hardie (ASX:JHX).

In the US, all three benchmarks pulled back, despite several strong earnings reports, from companies such as Bank of America, Morgan Stanley, and Procter & Gamble. It comes as investors remain cautious amid elevated government bond yields. The 10-year Treasury yield topped 1.9% during the session, its highest level since December 2019. This session ended with the Dow falling over 300 points, the S&P500 down 1% and the tech-heavy Nasdaq closing 1.2% lower.

For today, despite the negative session in the US, the futures are suggesting the Aussie share market will open 0.14% higher.

What to watch today:

• Block (ASX:SQ2) joins the ASX today, trading on a deferred settlement basis, replacing Afterpay, which has now officially been removed from the Aussie share market. In the US, Block’s share price closed 1.43% lower on Wednesday. 
• In economic news, yesterday consumer confidence for January fell 2% to 102.2, which was surprisingly solid, given the rapid spread of the Omicron variant. And today, the unemployment rate for December will be released. As a reminder, the unemployment rate came in at 4.6% in November. Consensus expects December’s reading to fall to 4.5%. 
• In commodities, oil prices lifted for the fourth day to a 7-year high, as an outage on a pipeline from Iraq to Turkey added to the tight supply outlook. The WTI crude oil price is currently up 1.18% to US$86.58 a barrel. The gold price lifted 1.5% to US$1,840 per ounce. The seaborne iron ore price is trading slightly lower at US$127 a tonne. And the silver, copper and platinum prices are all trading between 1.5% to 4.5% higher.
• Both BHP Group (ASX:BHP) and Centuria Industrial REIT (ASX:CIP) are holding their AGM today. 

Trading Ideas:

• Citi has maintained its BUY recommendation on global lithium chemicals company, Allkem (ASX:AKE), with an increased price target of $13.40 (previously $12). Separately, Bell Potter has a HOLD rating on AKE with a price target of $11, while Credit Suisse has an Outperform rating and a price target of $13.70. 
• Trading Central has a bullish signal on Orica (ASX:ORI). This signal indicates that the stock price may rise from the close of $13.92 to the range of $17.50 - $18.40 in the next 80 days, according to standard principles of technical analysis. 

The local market closed 0.1% lower yesterday. While materials lead the market, the healthcare sector declined the most. 

Biotech company Imugene (ASX:IMU) rallied 7%, closely followed by JB Hi-Fi (ASX:JBH), who reported a better-than-expected first-half trading update. Total sales managed to rise, while net profit fell 9.5%. JBH closed yesterday at $49.84 and Bell Potter maintain their HOLD rating on the stock, while Morgans upgraded from a HOLD to an ADD. 

Pointsbet (ASX:PBH), Virgin Money (ASX:VUK) and Zip (ASX:Z1P) were among the worst performers yesterday. 

Some of the most traded stocks by Bell Direct client yesterday included Lake Resources (ASX:LKE), APA Group (ASX:APA) and BrainChip (ASX:BRN). 

European stocks closed lower as investors reacted to developments in the oil and bond markets. Oil and gas shares gained the most, off the back of a surge in oil prices amid rising tensions in the Middle East. And global markets have been watching the Fed, as they’re expected to hike interest rates and tighten monetary policy. And as US bond yields rose on Tuesday, the tech sector suffered. The Nasdaq down 2.3%, its lowest level in 3-months and down 10% from its most recent high. The Dow was down 1.4% and the S&P500 down 1.7%. The US market was weighed down by Goldman Sachs shares, which dropped 7% after the bank reported fourth-quarter earnings which missed analyst expectations. Meanwhile, the 10-year yield rose to a 2-year high. 

Following New York, the SPI futures are suggesting the local market will fall 1.04% at the open. 

What to watch today:

• Oil is trading higher at US$86 a barrel, boosted by tight supply and geopolitical tensions in the Middle East. 
• Gold is trading slightly lower at US$1,813, easing from recent highs after the 10-year Treasury yield rose to pre-pandemic highs this week. 
• The seaborne iron ore price is trading 1.2% higher at US$127 a tonne. 
• Economic data to look out for today is the consumer confidence index for January, which will be released at 9:30am this morning. It’s expected to decline amid concerns of the rapidly spreading Omicron variant. 
• BHP (ASX:BHP), Lynas Rare Earths (ASX:LYC) and Woodside Petroleum (ASX:WPL) are set to release their fourth quarter production reports today. 
• Alternative Investment Trust (ASX:AIQ), Kelly Partners Group (ASX:KPG), and Plato Income Maximiser (ASX:PL8) and set to go ex-dividend today.

Trading Ideas:

• Bell Potter maintain their BUY rating on Life360 (ASX:360) and have decreased their price target from $16.25 to $15. Next Thursday Life360 will report and Bell Potter expect the company to have achieved all key 2021 guidance metric. 
• Trading Central have identified a bullish signal in NOVONIX (ASX:NVX). This bullish signal indicates that the stock price may rise from the close of $10.21 to the range of $14.50 - $15.50. The pattern formed over 34 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

Yesterday, the Aussie share market pushed 0.3% higher, supported by both the consumer discretionary and energy sectors. All eyes were on China, as we found out that China's economy grew 4% in the fourth quarter from a year earlier, faster than expected but its weakest expansion in one and a half years. 

The consumer discretionary sector advanced the most, led by Wesfarmer’s gain following its trading update before the market opened. The group's performance for the half was supported by pleasing results in Bunnings and Wesfarmers Chemicals, Energy & Fertilisers, while results in Kmart Group and Officeworks were impacted by COVID-related disruptions and costs. The worst performing sector was the materials sector, and we saw mining giants BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) come under pressure, down 1.14% and 0.52% respectively.  

Looking at the ASX200 stock leaderboard, two of Australia’s best-known fund managers were among the day’s top performers, Pendal Group (ASX:PDL) and Magellan Financial Group (ASX:MFG). Pendal Group led the way, up 7.8% following a statement that its chairman, James Evans would step down. Remember however, that last Friday Pendal fell 15.8% after a dip in funds under management. The second-best performer was Adbri (ASX:ABC), up 7.2% after announcing an extension of its lime supply contract with Alcoa. Meanwhile, Perseus Mining (ASX:PRU), Paladin Energy (ASX:PDN) and Liontown Resources (ASX:LTR) were down the most.  

The most traded stocks by Bell Direct clients yesterday included Liontown Resources (ASX:LTR), Telstra (ASX:TLS) and BrainChip (ASX:BRN). Beach Energy (ASX:BPT) lifted 3.9%, trading at levels not seen since October last year, supported by the oil price surging higher recently. 

The US market was closed on Monday for the Martin Luther King Junior holiday. In Europe, stocks closed higher on Monday as investors digested a string of corporate news and the latest growth data out of China. Credit Suisse was involved in a scandal whereby its chairman resigned after breaking COVID quarantine rules. Overall, we saw the German DAX close 0.32% higher, the FTSE up 0.91% and the STOXX600 rise 0.7%.

For today, in line with the positive session across the sea in Europe, the futures are suggesting the Aussie share market will open 0.30% higher. 

What to watch today:

• Rio Tinto (ASX:RIO) has just released its fourth quarter update. Its Chief Executive said despite the operating conditions remaining challenging in 2021, due to COVID-19 disruptions, the business continued to experience strong demand for its products and continued to progress several of its projects. Now Goldman Sachs expected iron ore shipments of 88.9Mt and 133kt of mined copper for the quarter. Rio has announced results that fall short of these expectations. Iron ore shipments of 84.1Mt and 132kt of mined copper. So keep watch of the stock, as it may come under pressure after falling short of these expectations. 
• Other companies releasing their fourth quarter results today include: Galaxy Resources (ASX:GXY) and Orocobre’s merger, Allkem (ASX:AKE), and petroleum company, Ampol (ASX:ALD).
• Oil prices edged higher as investors bet that supply will remain tight despite restrained output by major producers. The WTI crude oil price is currently up 0.54% to US$84.27 a barrel, that’s a 7-year high. The gold price held steady at US$1,818 per ounce. And the seaborne iron ore price is trading 1.25% lower, at US$126 a tonne.

Trading Ideas: 

• Firstly, Bell Potter have maintained their BUY recommendation on City Chic Collective (ASX:CCX). The retail clothing company recently released its preliminary unaudited first half 2022 results and two of the key highlights included: (1) strong first half 2022 results that were ahead of Bell Potter’s expectations, driven by strong growth in the US and robust sales in 

On Friday, the ASX200 ended its worst week since November, amid a sell-off among tech stocks. The tech sector declined 4%, with Afterpay (ASX:APT) at its lowest price since July. WiseTech Global (ASX:WTC), Nuix (ASX:NXL) and Nearmap (ASX:NEA) were all lower, and Xero (ASX:XRO) was down the most, falling 9%. Consumer staples also look a hit, and the local market closed just over 1% lower. 

Medical device company ResMed (ASX:RMD) performed best, advancing 3.6%, followed by Ramelius Resources (ASX:RMS) and AGL Energy (ASX:AGL). AGL was the best performer of the week, helping to offset some market losses. The stock gained 19% over the week, after Credit Suisse named AGL their top pick among energy sector equities, due to the advantage AGL has in low-cost coal supply. 

Investment manager Pendal (ASX:PDL) declined 15%, following the release of its funds under management update for the first quarter, which fell 2.5% to $135.7 billion, disappointing investors. 

Some of the most traded stocks by Bell Direct clients on Friday, were the major miners, including Fortescue Metals (ASX:FMG), Pilbara Minerals (ASX:PLS), BHP (ASX:BHP), Nickel Mines (ASX:NIC), Lake Resources (ASX:LKE) and Syrah Resources (ASX:SYR). 

European stocks were lower, as expectations for imminent policy tightening by the Fed resurfaced. US markets had another negative week. Major banking stocks were broadly lower after reporting their earnings. In recent weeks, bank stocks had outperformed as interest rates moved higher, however investors were underwhelmed by Friday’s reports. The Dow Jones was down 0.6%, while the S&P500 closed slightly higher 0.08%. Meanwhile, tech stocks helped offset concerns. The tech-heavy Nasdaq outperformed with a 0.6% gain. 

Following US equities, the SPI futures are suggesting the ASX200 will rise 0.38% at the open. 

What to watch today:

• The local tech sector, as ASX tech stocks often follow the Nasdaq’s lead. New York listed Xero (ASX:XRO) and Appen (ASX:APX) rebounded in the US on Friday. So their price movements will be on watch, however as the price of Block (formally known as Square) continues to fall in the US, it’s unlikely Afterpay will see any strong gains. 
• Despite speculation that China will release some of its reserves, the oil price charged higher. The oil price rose more than 2% to US$83.82 a barrel. Supply disruptions in Libya and Kazakhstan and the diminishing US crude inventories, have offset mobility in China. 
• Gold is trading lower, at US$1,817 an ounce, weighed down by higher US Treasury yields and a rebound in the dollar. 
• The seaborne iron ore price is also trading lower at US$126.24 a tonne. 

Trading ideas:

• Credit Suisse has upgraded their rating on AGL Energy (ASX:AGL) from Neutral to Outperform, and have increased their price target from $7.30 to $8.30. EPS and DPS forecasts have been noticeably increased, and AGL last closed at $7.47. 
• Trading Central have identified a bullish signal in De Grey Mining (ASX:DEG), which indicates that the stock price may rise from the close of $1.28 to the range of $1.58 to $1.66. The pattern formed over 111 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.

The Aussie share market gained 0.3% this week (Mon-Thu). The energy sector advanced the most, while the consumer staples sector took the biggest hit. 
 
 In this week’s wrap, Sophia covers: 

• (0:23) AGL Energy (ASX:AGL) lifting 15% following a broker update
• (0:45) PolyNovo (ASX:PNV) gaining after record US sales reports
• (1:14) Why investors bought into BrainChip (ASX:BRN)
• (1:34) What stocks Bell Direct clients were trading this week
• (1:56) Bell Potter's top stock picks for 2022
• (4:47) Two economic news items to watch out for 

Yesterday the ASX200 lifted 48 points or 0.66% higher, the market’s first gain of the week, boosted by both the energy and tech sectors, which gained 3% and 2% respectively. Also supporting the market was solid gains for commodity prices, as well as Jerome Powell’s testimony that confirmed the Fed would lift rates if needed to check prices. 

Nickel Mines (ASX:NIC) led the way, up an impressive 6.5%. This follows the nickel price touching a seven-year high amid the global push towards a greener future, like the push towards electric vehicles. Nickel is a key component in lithium-ion batteries, which are used to generate power for electric vehicles. Another top performer was Afterpay (ASX:APT). The stock gained 4.8% yesterday after the company cleared its final hurdle to be taken over by Block (formerly Square). APT will now officially stop trading on the ASX next Wednesday, the 19th of January, and will commence trading on the NYSE on the 2nd of February. Meanwhile, Domino’s Pizza (ASX:DMP) came under pressure, falling 4.5%. This appears to be driven by an update from its US parent. The pizza giant warned that it’s expecting “unprecedented” food cost increases in 2022, approximately an 8% to 10% rise in its food basket costs, and that’s worrying, as that’s 3-4 times the food inflation experienced in a typical year. 

The most traded stock by Bell Direct clients yesterday, were Allkem (ASX:AKE), a lithium carbonate supplier, formed after the merger between Orocobre and Galaxy Resources. Its shares have gained over 25% the past month, underpinned by the hot-running lithium markets. Lithium carbonate prices have increased six-fold since January 2021. 

In the US, all three benchmarks rose, with the Nasdaq gaining for the third straight day. This comes as the consumer price index increased 0.5% last month, which was slightly better than expected. And therefore in the 12-months through to December, the CPI has surged 7%, its biggest jump since 1982. 

Despite the positive session on Wall Street, the futures as at 8:30am AEDT are suggesting the Aussie share market will open 0.04% lower. 

What to watch today:

• Keep an eye on Crown Resorts (ASX:CWN). Goldman Sachs gave the stock a neutral rating and an $11.03 price target, telling investors to instead buy the shares of its rival Star Entertainment Group (ASX:SGR). 
• Oil prices pushed to two-month highs on tight supply and easing concerns about the potential hit to demand from the Omicron variant.
• The gold price gained, as the dollar retreated following US inflation being in line with expectations. Spot gold was up 0.2% to $1,825 per ounce.  
• The silver, copper, steel, iron ore and lithium prices are all booming, all up between 1.5%-3%.  

Trading Ideas:

• Citi have maintained their BUY recommendation on shipbuilding and repairing company, Austal (ASX:ASB) with a price target of $3.09. Citi believes the stock remains catalyst rich and are supportive of the new strategies aimed at diversifying pipeline risk. These include adding steel capability and increasing number of programs it contests) and growing support revenue. Austal closed 5% higher yesterday to $1.97, which implies about 57% share price growth in a year.
• Trading Central has a bullish signal on software company, Whispir (ASX:WSP). This signal indicates that the stock price may rise from the close of $2.60 to the range of $2.64 - $2.72 in the next 30 days, according to standard principles of technical analysis. 

Yesterday Australian shares fell for the second straight trading session. The benchmark index was dragged down mostly by the major banks, real estate, and consumer staples, and the ASX200 closed 0.76% lower. Meanwhile, materials managed to close slightly higher. 

PolyNovo’s (ASX:PNV) share price gained rose an impressive 25.2% yesterday to $1.79. They reported unaudited record US sales in December of $3.4 billion, which is a 76% increase on the same time the year prior. 

The worst performer yesterday was ARB Corporation (ASX:ARB), down more than 12%, after reaching a 52-week high last week. This was after Credit Suisse downgraded its share price guidance on ARB from “neutral” to “underperform” with a $38 price target. Meanwhile, JP Morgan upgraded ARB to “underweight” yesterday, with a $35 price target. ARB closed yesterday at $46.32. 

The most traded stocks by Bell Direct clients yesterday included Coles (ASX:COL), Fortescue Metals (ASX:FMG), Afterpay (ASX:APT).

In the US, all three major benchmarks closed higher. The S&P500 up 0.9%, the Dow up 0.5% and the Nasdaq rallied for a second day, gaining 1.4%. Rising interest rates have put pressure on equities, however, interest rates cooled yesterday, with the 10-year Treasury yield falling below 1.75%.

Investors will be trading cautiously ahead of inflation updates in the US today and tomorrow, awaiting an indication of US interest rate hikes. 

Following the positive session in New York, the SPI futures are suggesting the ASX200 will open 0.86% higher this morning.

What to watch today:

• Oil is trading over 3% higher at US$81 a barrel, boosted by short supply and a weaker dollar, as well as expectations that the impacts of Omicron on the economy will be short-term. 
• Gold is also trading higher, above US$1,800 an ounce, as investors await the US inflation reading. 
• The seaborne iron ore price is trading 1.4% lower US$124 a tonne. 
• In economic news, retail sales data was released yesterday, which increased by 7.3% in November, from 4.9% the month prior. This exceeded market consensus of 3.9% and was the largest lift in 18 months. Balance of Trade data was also released. Australia’s trade surplus fell from $10.78 billion to $9.43 billion in November 2021. It was the smallest trade surplus since April, with the softening of global demand due to the COVID-19 pandemic. 

Trading Ideas:

• Bell Potter maintain their BUY rating on BCI Minerals (ASX:BCI), and have lowered their price target from $0.71 to $0.66. The iron ore miner has completed a capital raising of up to $360 million, that represents the last piece of its $1.2 billion funding package for its Mardie Salt & Potash project. BCI closed yesterday at $0.42, implying 52% share price growth in a year. 
• Trading Central has identified a bullish signal in Centaurus Metals (ASX:CTM) which indicates that the stock price may rise from the close of $1.27 to the range of $1.32 - $1.36, within 65 days. 

The Aussie share market started yesterday down 0.6%, however managed to close just 0.08% lower yesterday to 7,447. Only three sectors managed to post gains, while the tech and consumer discretionary sectors were hit the hardest. The tech sector is suffering from a spike in bond yields as markets anticipate a faster tightening cycle by central banks.

Looking at the ASX200 stock performance, the top stock yesterday was battery materials and technology company, Novonix (ASX:NVX). The stock was up 10.8% after announcing its intentions to list on a second stock exchange, the Nasdaq in the US. AGL Energy (ASX:AGL) also performed well, rising 8.6%, following a bullish broker note from Credit Suisse, upgrading the stock to “outperform”. And some of the other best performing stocks included mining stocks Alumina (ASX:ALU), Champion Iron (ASX:CIA), Chalice Mining (ASX:CHN) and Iluka Resources (ASX:ILU). Reliance Worldwide (ASX:RWC) was the worst performer, down 3.4%, despite no news out from the company, and both Xero (ASX:XRO) and WiseTech Global (ASX:WTC) saw some selling as the tech sector came under pressure.

The most traded stocks by Bell Direct clients yesterday was Wesfarmers (ASX:WES). The company is now the last one standing in the takeover of Priceline owner Australian Pharmaceuticals Industries (ASX:API), after Woolworths withdrew its proposal. Afterpay (ASX:APT), Telstra (ASX:TLS) and Fortescue Metals (ASX:FMG) were also highly traded yesterday. 

In the US, stocks recovered from earlier losses, staging an afternoon rally that put an end to the Nasdaq’s four day losing streak. The tech-heavy Nasdaq closed 0.05% higher, while the Dow and S&P500 both fell, down 0.45% and 0.14% respectively. European stocks closed lower amid interest rate fears, ahead of key US inflation data out this week and more comments from US Federal Reserve Chairman Jerome Powell on interest rate hikes.

For today, following the mixed session on Wall Street, the futures are suggesting the Aussie share market will open 0.56% lower. 

What to watch today: 

• Keep an eye on Ramsay Health Care (ASX:RHC). The company reached agreement regarding a new volume-based agreement with the NHSE, the National Health Service in England, which makes its services available to the NHSE and its patients to meet the ongoing demands resulting from the COVID-19 pandemic. If the agreement is well received by investors, its shares could lift.
• Economic news out today includes Australia’s balance of trade data for November. Australia's trade surplus decreased to A$11.22 billion in October from a downwardly revised A$11.82 billion in the previous month. Consensus expects trade surplus to decrease again to A$10.6 billion in November. Separately, retail sales for November will also be released today.
• Oil prices fell on demand concerns given the rapid global rise in omicron infections, while the gold price edged higher despite US 10-year Treasury yields hitting two-year highs. And the seaborne iron ore price traded slightly higher to US$126 a tonne.  

Trading Ideas: 

• Bell Potter have upgraded their rating on coal mining company, Whitehaven Coal (ASX:WHC) from a HOLD to a BUY, and have also increased their price target from $3.50 to $3.60. Bell Potter believe the coal price strength from mid-2021 should now be flowing through to realised prices, which should materially lift free cash flow. Operational risks at Narrabri remain, however, should abate over 2022. Therefore, Bell Potter believe WHC is cheap on most valuation metrics, and that supports their upgrade to a BUY. Now, WHC closed 5% higher yesterday to $2.89, which implies about 25% share price growth in a year.
• Trading Central has a bullish signal on EML Payments (ASX:EML). This signal indicates that the stock price may rise from the close of $3.22 to the range of $4.30 - $4.50 in