Between the Bells

The Federal Government released its 2021-2022 recovery budget, unveiling funding for infrastructure projects, aged care and defence and intelligence agencies.  

Following the US, he Aussie share market is set to drop, with the futures a 0.64% fall. 

What to watch today:

• The Federal Government unveiled its 2021-2022 “recovery budget”. There are three key considerations for ASX investors and companies:
  • Firstly, $15.2 billion in additional spending will go to infrastructure projects. Watch Lendlease Group (ASX:LLC) and Cimic Group (ASX:CIM).
  • Secondly, $18 billion in additional funding will go to the aged care system. Keep an eye on companies like Regis Healthcare (ASX:REG), Estia Health (ASX:EHE), Japara Healthcare (ASX:JHC), PainChek (ASX:PCK) and Alcidion (ASX:ALC). 
  • Finally, $1.9 billion will go to defence and intelligence agencies. Watch Austal (ASX:ASB), Appen (ASX:APX) and BrainChip (ASX:BRN).
• CBA, Pushpay Holdings (ASX:PPH), AusNet Services (ASX:AST) and CSR Limited (ASX:CSR) set to report today.
• AGMs today include Sigma Healthcare (ASX:SIG), Smartgroup Corporation (ASX:SIQ), Telix Pharmaceuticals (ASX:TLX) and Unibail-Rodamco Westfield (ASX:URW).
• The Oil price lifted about 0.9%, the Gold price slipped as rising US yields dim appeal. And, Copper was up 1.5%.
• The most traded stocks by Bell Direct clients yesterday: Westpac (ASX:WBC), National Australia Bank (ASX:NAB) and ANZ (ASX:ANZ). 

Trading Ideas:

• Bell Potter have maintained their Buy recommendation on AMA Group (ASX:AMA), however have decreased its price target by 18%. 
• Bell Potter have upgraded their recommendation on Eagers Automotive (ASX:APE) from a Hold to a Buy.
• Harvey Norman (ASX:HVN), Adacel Technologies (ASX:ADA) and Capral (ASX:CAA) are all showing bullish charting signals according to Trading Central.  

US equities fell overnight with all three benchmarks closing lower, as tech stocks dragged down the market. 

Following the US, the Aussie share market is set to drop, with the futures suggesting a 0.73% fall. 

What to watch today:

• New home sales will be released this morning, currently at their highest since 2004. 
• The Australian budget will be released tonight. Federal Treasurer Josh Frydenberg says the upcoming budget will prioritise job creation. The Australian economy has seen a better than expected economic recovery from the COVID-19 outbreak, after seeing the largest budget deficit last year since WWII. 
• Leading Australian tech shares like Afterpay (ASX:APT) and Zip (ASX:Z1P), following US tech shares coming under pressure overnight. 
• Boral (ASX:BLD) after Seven Group Holdings (ASX:SVW) launched an off market takeover offer. Seven already holds a 23.2% stake in the group and is offering $6.50 cash per Boral share - an offer that matched Boral’s closing price on Monday. 
• The Oil price is down 0.03%, Copper down 3.69%, Silver down 0.5%, while Iron Ore is up 5.45%. And Gold is up 0.3% nearing a 3-month peak. 
• The most traded stocks by Bell Direct clients yesterday were Deterra Royalties (ASX:DRR), (ASX:ANZ) and Fortescue Metals (ASX:FMG). 

Trading ideas:

• Bell Potter has maintained their Buy recommendation of a2 Milk (ASX:A2M), with a price target of $8.50, previously $9.50. a2 Milk closed yesterday at $6.10, implying a 39.3% share price growth in the year. 
• Bell Potter have released another report on Synlait Milk (ASX:SM1), lowering their price target to $3.85. SM1 closed yesterday at $3.03, implying 27.1% growth. 
• Brainchip Holdings (ASX:BRN), West African Resources (ASX:WAF) and Aurelia Metals (ASX:AMI) are all giving off bullish charting signals according to Trading Central. 

On the eve of the Australian Federal Budget being handed down tomorrow night - with a massive $4 billion injection into infrastructure expected – the Aussie share market futures suggest the market will get off to a slow start this week – the futures suggesting a dip of 0.1%. 

What to watch: 

• Iron ore surged over 3% taking the key steel ingredient off the charts to US$204. Morgan Stanley expects the iron ore price will rise to US$215 this year – and this will benefit Fortescue Metals Group (ASX:FMG). 
• All eyes on Crown Resorts (ASX:CWN) following an increased takeover offer and a merger proposal.
• Pendal (ASX:PDL) reported half year results and entered a trading halt after announcing plans to buy a US investment company for $413 million.
• The a2Milk Company (ASX:A2M) shares are likely to come under further pressure today as it advised it won’t be meeting its guidance and that its earnings will be significantly lower.
• Economic news out – NAB business confidence for April.  

Trading ideas:

• Bell Potter reiterated Regis Resources (ASX:RRL) as a BUY but reduced its price target to $4.08, implying 51% growth in a year. 
• OceanaGold (ASX:OGC), Hazer (ASX:HZR) and Euro Manganese (ASX:EMN) are all giving off bullish charting signals according to Trading Central.

All three US benchmarks rallied on Thursday and US stock futures have opened slightly higher ahead of key April jobs report data. 

Given this, the Aussie share market is set to open higher, mirroring US gains with the futures are suggesting a 0.28% rise at the open.

What to watch:

• Australia will publish the April AIG Performance of Services Index, which was previously at 58.7, while the RBA will unveil the Minutes of its latest meeting at 11:30am AEST.
• Travel stocks like Flight Centre (ASX:FLT), Qantas (ASX:QAN) and Air New Zealand (ASX:AIZ) after New Zealand Prime Minister Jacinta Arden put a 48-hour halt on quarantine free travel between New South Wales and New Zealand. 
• Newscorp (ASX:NWS) reported third quarter profits of $US96 million, after a billion dollar net loss previously. Newscorp’s steady growth is highly driven by their digital real estate segment.
• REA Group (ASX:REA) reported third quarter 2021 sales. The group delivered strong third quarter results with revenue increasing 8% year-on-year. 
• Goodman Group (ASX:GMG) and Macquarie Group (ASX:MQG) set to report results later today. 
• Iron Ore continues to trade higher, currently at a record high of US$197.68. 

Trading ideas:

• Bell Potter has reiterated their BUY recommendation on Emeco Holdings (ASX:EHL) with a $1.50 price target.
• Bell Potter have also retained their BUY recommendation on Synlait Milk (ASX:SM1), maintaining its price target at $4.10.
• Southern Cross Media Group (ASX:SXL), Peel Mining (ASX:PEX), and Bisalloy Steel Group (ASX:BIS) are all giving off bullish charting signals according to Trading Central. 

Aussie share market set to open higher following US equities strong earnings results, with the futures suggesting 0.07% lift. 

What to watch today:

• National Australia Bank (ASX:NAB) reported its H12021 results today. It reported cash earnings of $3.343 billion, which is 35.1% higher compared with H12020.
• Vehicle mobility solutions business Eclipx Group (ASX:ECX) to report today.
• The Oil price dipped despite declining inventory, the Gold price lifted following a retreat in the US dollar, and iron ore continues to trade at a record high.
• AGMs today include Genworth Mortgage (ASX:GMA), Iress (ASX:IRE) and TPG Telecom (ASX:TPG). 
• The most traded stocks by Bell Direct clients yesterday: Australia and New Zealand (ASX:ANZ), Afterpay (ASX:APT) and Flight Centre (ASX:FLT). 

Trading ideas:

• One of the world’s largest producers of high-quality metallurgical coal, Coronado Global Resources (ASX:CRN) had its BUY rating reiterated by Bell Potter. 
• City Chic Collective (ASX:CCX) also maintains its BUY rating, with an increased price target of $4.90. 
• South32 (ASX:S32), Worley (WOR) and Tesserent (ASX:TNT) are all showing bullish charting signals according to Trading Central. 

 The Aussie share market is set to pull back 0.4% at the open if you go by the futures, with Tech stocks likely to pull back the most. 

What to watch today:

• Australia and New Zealand Bank (ASX:ANZ) reported results, with shares likely to lift 0.6%. ANZ half year profits rose 45% to $2.9 billion, supported by an improving economic outlook and an increase in loans.
• The UK Government are planning on easing COVID- 19 restrictions on the 17th of May. Keep an eye on ASX stocks operating in the UK, including Virgin Money (ASX:VUK), which is trading 55% higher this year and is the ASX200’s best performer in 2021.
• Amcor PLC (ASX:AMC) and Irongate (ASX:IAP) are due to report results today.
• Bank of Queensland (ASX:BOQ) to go ex- dividend today. 
• Building permits for March are out today with expectations that this they will rise 3%, following the 22% lift in February. Keep an eye on building construction companies like Fletcher (ASX:FBU), CSR Limited (ASX:CSR), Brickworks (ASX:BKW) and Boral (ASX:BLD). 
• The most traded stocks from Bell Direct yesterday: Dexus (ASX:DXS), Afterpay (ASX:APT) and BHP (ASX:BHP). 

Trading ideas:

• Flight Centre (ASX:FLT) was reiterated as a Bell Potter Buy, albeit with a slimmer $20 price target, that implies 24% upside
• Graincorp (ASX:GNC), Capral (ASX:CAA) and West African Resources (ASX:WAF) are all giving off bullish charting signals according to Trading Central.

The Aussie share market is likely to trade 0.2% higher today with Hydrogen stocks in the limelight. 

What to watch today:

• Australia and New Zealand Bank (ASX:ANZ) is set to report earnings tomorrow, National Australia Bank (ASX:NAB) to report later this week and Commonwealth Bank (ASX:CBA) to report next week. 
• The RBA meets today with the focus on bond buying as interest rates are expected to remain on hold. 
• Australia’s first green hydrogen/gas power plant is set to be built in Illawarra with the government spending $300 million on the project. Hydrogen stocks in breakouts from a technical perspective include Hazer (ASX:HZR), Province Resources (ASX:PRL), Fortescue Metals (ASX:FMG) and QEM (ASX:QEM).
• As restrictions ease in the UK, keep an eye on Virgin Money UK (ASX:VUK), Link Administration (ASX:LNK), Ramsay Health Care (ASX:RHC) and Breville (ASX:BRG). 
• Dexus (ASX:DXS) reports quarterly earnings today.
• Acorn Cap Investment Fund (ASX:ACQ), Vitalharvest Freehold (ASX:VTH), and Waterco (ASX:WAT) go ex-dividend today, while Bank of Queensland (ASX:BOQ) goes ex-dividend tomorrow. 
• The most traded stocks from Bell Direct clients yesterday: Westpac (ASX:WBC), Kogan (ASX:KGN) and Telstra (ASX:TLS), while advised clients traded Fortescue Metals (ASX:FMG), Woolworths (ASX:WOW) and Zip Co (ASX:Z1P). 

Trading ideas:

• PointsBet Holdings (ASX:PBH) was reiterated as a speculative Bell Potter Buy. 
• Deep Yellow (ASX:DYL), Starpharma (ASX:SPL) and Australian Agriculture Co (ASX:AAC) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open lower with the futures suggesting a 0.1% slip. It’s a big week for economic news with banks set to report earnings results. 

What to watch today:

• Westpac (ASX:WBC) reported their half year results this morning with statutory net profit of $3.4 billion. 
• ANZ Bank (ASX:ANZ) reports on Wednesday and National Australia Bank (ASX:NAB) reports on Thursday. 
• Commonwealth Bank (ASX:CBA) to provide quarterly update the following week. 
• Watch earnings results from Amcor (ASX:AMC) and Pendal (ASX:PDL) this week. 
• AGMs to be held for QBE Insurance (ASX:QBE), Rio Tinto (ASX:RIO) and Goodman Group (ASX:GMG). 
• Commodity stocks are likely to see activity today: Oil price fell 2% on the weekend, and the Iron Ore price is up 0.2% overnight, its highest level in almost 10 years. 
• Most traded stocks from Bell Direct on Friday: Sydney Airport (ASX:SYD), Qantas (ASX:QAN) and Flight Centre (ASX:FLT). Advised clients traded Magellan Global Fund (ASX:MGF). 

Trading ideas:

• Bubs Australia Ltd (ASX:BUB) is a speculative Bell Potter HOLD, trading at a year low and on a downtrend.
• Pointsbet (ASX:PBH), Super Retail Group (ASX;SUL) and Enero Group (ASX:EGG) are all giving off bullish charting signals according to Trading Central. 

 The Aussie share market hit a 14-month high this week and is just 1.3% off its all-time high. With new key themes and opportunities emerging in this bullish market, it's a good time to re-examine the fundamentals.

In this week’s wrap, Jessica covers: 

• (0:23) Why investors are finding the most value in Energy
• (1:24) What's fuelling mining stocks: record highs and electric vehicle demand
• (2:44) NIB Holdings (ASX:NHF) rising 14%, in a bullish Insurance sector
• (4:00) Three key considerations when selecting a stock for your portfolio
• (4:30) How to find stocks using Bell Direct's 'Strategy builder' tool