Between the Bells

Well the US Federal Reserve have kept rates unchanged, but raised expectations of at least two increases in interest rates by the end of 2023. 

China announced yesterday that they would release national reserves of aluminium, copper and zinc, to stabilise commodity prices. This weighed down on miners, however the ASX200 still closed higher. 

Despite US equities falling overnight, the Aussie share market is set to open higher, with the futures suggesting the market will rise by 7 points. 

What to watch today:

• The RBA bulletin will be released this morning at 11:30am AEST, with announcements on the unemployment and participation rates.
• Keep an eye on Coles (ASX:COL) as they hold their virtual strategy day today, where they will provide an update on their refreshed strategy, with the potential for an update on their sales. 
• The oil price is down 0.8%, gold is down 2.4%, copper is down 1.5% and iron ore is trading 0.2% lower. 
• The most traded stocks by Bell Direct clients yesterday were Northern Star Resources (ASX:NST), BHP (ASX:BHP) and Flight Centre (ASX:FLT).

Trading ideas:

• Bell Potter have reiterated their BUY recommendation on Imdex (ASX:IMD) with an increased price target of $2.35 (previously $2.20). 
• Straker Translations (ASX:STG), Credit Corp Group (ASX:CCP) and Adore Beauty Group (ASX:ABY) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open lower, with the futures suggesting the market will fall 0.2%. 

Traders and investors are exercising caution awaiting the Fed’s monthly announcement. 

What to watch today: 

• Oil is up to US$72.12, at its highest level in almost three years. 
• Iron ore hit another record high at US$221.00.
• Australia and the UK agree to a free trade deal, with tariffs being phased out over a decade. 
• Australian farmers eye off another big winter crop. Watch Elders (ASX:ELD), Graincrop (ASX:GNC), Australian Agriculture Co (ASX:AAC) and Ridley Corp (ASX:RIC). 

Trading Ideas: 

• DGL Group (ASX:DGL) was initiated as a Bell Potter Buy with a $1.50 price target. 
• The a2 Milk Company (ASX:A2M), MA Financial Group (ASX:MAF) and Hearts and Minds Investments (ASX:HM1) are all giving off bullish charting signals, according to Trading Central. 

On the Aussie COVID-19 vaccine front - Novavax’s COVID-19 vaccine candidates showed strong efficacy against the virus. This sparks good news for Australia’s vaccine strategy – as the federal Government has made the Novavax shot one of the key parts of its rollout and has 51 million doses placed on order.

Given, the news of the Novavax vaccine, as well as the reasonably positive start to Wall Street’s week, the Aussie share market looks set to lift 0.80% or 56 points higher to 7,368 points if you go by the futures. 

US eco data out this week includes retail sales data for May, which is out today at 10:30pm AEST and on Thursday, the Fed will announce their interest rate decision. 

What to watch today:

• In economic news, today the RBA releases its meeting minutes, and house price index data is out. On Thursday, the unemployment rate for May will be announced and RBA Governor Lowe will deliver a speech titled ‘From recovery to expansion’.
• The oil price held steady after hitting a 2-year high, while the gold price slipped as investors fear the US Fed may outline a path for scaling back its expansive monetary policy at its two-day meeting this week.  
• The most traded stocks by Bell Direct clients last Friday were ANZ Bank (ASX:ANZ), Westpac (ASX:WBC) and Queensland Pacific Metals (ASX:QPM).

Trading ideas:

• Bell Potter have reiterated their BUY recommendation on Domino’s Pizza (ASX:DMP), with an increased price target of $132 (previously $122). Domino’s closed about 1% up last Friday to $115.30, which implies 14.4% share price growth. 
• Bell Potter has also increased its price target on Portman’s and Peter Alexander owner Premier Investments (ASX:PMV) to $26.10 (previously $25). PMV expects its Earnings before Interest and Tax to range between $340 - $360 million, which is 5-11% ahead of Bell Potter’s estimate of $344 million. This positive expectation is off the back of a strong sales performance, strong online sales growth, and strong cost control. However, with its share price currently at $27.44, that implies a negative 4.9% share price growth, therefore Bell Potter have a HOLD rating on the stock. 
• IOUpay (ASX:IOU), Lynas Rare Earths (ASX:LYC) and Cyprium Metals (ASX:CYM) are also giving off bullish charting signals according to Trading Central. 

The Aussie share market hit three record highs this week as the Tech sector turned up the watts. However, the market now tracks sideways as it holds its breath for the Fed's interest rate announcement. In this week’s wrap, Jessica covers:

• (0:7) Old school Tech stock gains while Financial stocks get hit by EOFY portfolio adjustments
• (0:22) Altium (ASX:ALU) rising 27% as the standout stock of the week
• (1:22) Why the ASX200 is likely to rally over the medium term
• (2:22) Two major themes emerging that investors should consider
• (4:40) Why consider semiconductor companies

The Aussie share market is set to open higher, with the futures suggesting the market will rise 0.1%. 

All three US indices rose overnight, despite an inflationary reading that saw consumer prices rise more than expected. 

What to watch today: 

• Food and beverage companies will be in focus, as Victoria ended its lockdown overnight and hospitality ventures reopen. Watch Wesfarmers (ASX:WES) and Coles (ASX:COL). 
• Australia and Singapore could start a travel bubble if more Australians are vaccinated and transmissions fall. Watch travel stocks including Flight Centre (ASX:FLT), Qantas (ASX:QAN), Webjet (ASX:WEB) and Adacel (ASX:ADA). 
• Demand for iron ore is surging. The iron ore price could rise from its current level at US$214 to US$300. Keep an eye on iron ore stocks. 

Trading Ideas: 

• Citi has a Buy recommendation on Zip (ASX:Z1P) with a $10.90 price target. 
• Adriatic Metals (ASX:ADT), Nitro Software (ASX:NTO) and Shopping Centres Australasia Property Group (ASX:SCP) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open lower, with the futures suggesting the market will fall 0.04% to 7,272 points. 

Investors are cautious pending the release of the US Inflation report for May, which will be released tonight 10:30pm AEST. 

What to watch today:

• Australia’s Consumer Inflation Expectations will be released at 11am this morning. 
• Watch Brickworks (ASX:BKW), after they just hit a record high at $23.54. The company announced they expect record earnings of $100 million from a Joint Venture Industrial Property Trust. 
• Keep an eye on travel stocks as Melbourne’s restrictions are set to ease from midnight tonight. 
• The oil price is down 0.4%, gold is down 0.2% and copper is down 0.6%, while iron ore is trading 1.1% higher. 
• The most traded stocks by Bell Direct clients yesterday were: Iluka Resources (ASX:ILU), Fortescue Metals (ASX:FMG) and Australia and New Zealand Bank (ASX:ANZ). 

Trading ideas:

• Bell Potter have maintained their BUY recommendation on Coronado Global Resources (ASX:CRN), with a $1.10 price target (previously $0.95). 
• Bell Potter have maintained their BUY recommendation on Whitehaven Coal (ASX:WHC) with an increased price target of $2.40 (previously $2.25). 
• Bell Potter also have a BUY recommendation on Doctor Care Anywhere (ASX:DOC). They have lowered their price target on DOC from $1.95 to $1.70.
• Consistent with Bell Potter, Trading Central are also bullish on Whitehaven Coal (ASX:WHC). Lynas Rare Earths (ASX:LYC) and Marley Spoon (ASX:MMM), are also giving off bullish charting signals according to Trading Central.

Yesterday the Aussie share market hit a brand new record high, reaching 7,316 points. 

Today the Aussie share market is set to hit another all time high, with the futures suggesting the market will rise 0.14%. 

What to watch today: 

• The tech sector is set to make a comeback. Watch WiseTech (ASX:WTC) and Appen (ASX:APX). 
• Also watch cyber security stocks, including Rhipe (ASX:RHP), Tesserent (ASX:TNT) and Archtis (ASX:AR9). 
• The oil price holds above US$70 a barrel, at its highest level in over two years. 

Trading Ideas: 

• Within the energy sector, Bell Potter has Buy recommendations on Beach Energy (ASX:BPT), Byron Energy (ASX:BYE) and Cooper Energy (ASX:COE). 
• UBS recommended oil stocks include Oil Search (ASX:OSH), Origin Energy (ASX:ORG), Santos (ASX:STO) and Woodside Petroleum (ASX:WPL). 
• Tesserent (ASX:TNT), NEXTDC (ASX:NXT) and Kalium (ASX:KLL) are all giving off bullish charting signals according to Trading Central. 

After a mixed session overnight on Wall Street, the futures are suggesting the Aussie share market will open 0.1% higher. 

What to watch today: 

• Australia’s Business Confidence data will be released today and Consumer Confidence data to be released tomorrow. 
• US inflation data to be released on Thursday. 
• The oil price fell 0.1% to US$69.20 a barrel, iron ore is trading 0.5% lower and gold rebounded to $1,901. 
• Most traded stock by Bell Direct clients yesterday: Altium (ASX:ALU). And the most traded stock by our advised clients: VanEck Vectors Australian Equal Weight ETF (ASX:MVW). 

Trading Ideas: 

• Austal Limited (ASX:ASB) was reiterated as a Citi BUY with a $3.30 price target. 
• Oneview Healthcare (ASX:ONE), Energy Resources (ASX:ERA) and Orica (ASX:ORI) are all giving off bullish charting signals according to Trading Central. 

US equities lifted on Friday, after the key May jobs report was released. The US economy added 559,000 jobs in May, coming in slightly lower than the estimate of 671,000. Despite the miss, it still showed a healthy rebound in the labor market and boosted confidence in the economic comeback. The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. 

Tech shares rebounded on Friday following the jobs report miss and the US 10-year treasury yield falling. We saw Zoom up about 5% and Tesla up around 4.5%. 

The Aussie share market is set to reset its record high at the open, with the futures suggesting the market will lift 0.10% or 7 points higher to 7,300 points.

What to watch today:

• In economic news this week, tomorrow Business Confidence is out for May– the question will be if levels will rise above the record high 26 points set in April. Then on Wednesday, Consumer Confidence is out for June where the focus will be on whether Victoria’s lockdown will pull confidence levels back from their current level of 113.1.
• On Friday the Oil price hit an intra-day high of US$72 a barrel, for the first time since 2019. This was off the back of OPEC discipline and demand hopes. Also boosting Oil, was a slowdown in talks between the US and Iran, which reduced expectations of a rise in Iranian oil supply. 
• Iron ore eased below $US210 a tonne given weaker sentiment in China’s steel market.
• The Gold price rose 1% off the back of softening bond yields. 
• The most traded stocks by Bell Direct clients last Friday were: Steadfast Group (ASX:SDF), Telstra (ASX:TLS) and Westpac (ASX:WBC). Our advised clients most traded stocks were also Steadfast and Telstra, as well as iShares Core Composite Bond ETF (ASX:IAF).

Trading Ideas:

• Bell Potter have reiterated their BUY recommendation on iron ore company BCI Minerals (ASX:BCI), with an increased price target of $0.69 (previously $0.57). BCI closed 2.5% up last Friday to $0.42, which implies a huge 64% share price growth. 
• Bell Potter has also maintained their BUY recommendation on pharmaceutical company Mayne Pharma (ASX:MYX), with a price target of $0.56. 
• Pilbara Minerals (ASX:PLS), Venturex Resources (ASX:VXR) and QBE Insurance Group (ASX:QBE) are all giving off bullish charting signals according to Trading Central.  

After 15 months of regaining losses, this week the Aussie share market hit a historical high, largely thanks to better than expected economic news. With the tax time sell-off approaching, investors are scouting the market for new opportunities, so this week, we've done the heavy lifting for you...

In this week’s wrap, Jessica covers: 

• (0:07) Flying high - the ASX200's great pickup
• (1:17) Why oil stocks accounted for 60% of the ASX200's top performers this week and what this means for investors
• (2:42) A top performer for the year: Codan (ASX:CDA)
• (3:57) Key economic news to be across next week
• (5:27) What's behind a2 Milk's (ASX:A2M) recent bounce back