Between the Bells

The ASX200 is eyeing a lift of 0.7% at the open.

Markets were bullish overnight as Joe Biden was sworn in as 46th President of the United States with a pledge to keep taxes low until after the pandemic. This could support the US economy and stocks.

What to watch today:
- The UAE signed a deal to buy 18 drones from the US. So keep an eye on Orbital Corporation (ASX:OEC), Drone Shield (ASX:DRO), Electro Optic Systems (ASX:EOS) and Xtech (ASX:XTE).
- Employment numbers for December are out at 11:30am. 50,000 jobs are expected to have been added last month and the unemployment is tipped to fall to 6.7%.

Local trading ideas:
- Accent (ASX:AX1) had its buy rating upgraded by Bell Potter with a new $2.65 target.
- Pantoro Limited (ASX:PNR) had its buy rating upgraded by Bell Potter with a new $0.28 target.
- Nickel Mines (ASX:NIC), Centuria Capital (ASX:CNI) and Beacon Lighting (ASX:BLX) are giving off bullish charting signals according to Trading Central.

The ASX200 is eyeing a 0.2% lift at the open following the 1.2% gain yesterday.

US equities lifted higher overnight, resuming trade after the Martin Luther King public holiday. This saw the S&P500 and NASDAQ gain 0.8% and 1.5% respectively.

What to watch today:
- Tech stocks are likely to follow the US moving higher. All eyes will be on Afterpay (ASX:APT) and Sezzle (ASX:SZL).
- Sydney Airport (ASX:SYD) will report December numbers.
- Australian Pharmaceuticals Industries (ASX:API) holds its AGM.
- Monthly consumer confidence data will be released with confidence levels at a decade high.

Local trading ideas:
- TechnologyOne (ASX:TNE) was upgraded to a buy by Bell Potter with a $9.25 price target.
- Liontown Resources (ASX:LTR) was upgraded to a speculative buy by Bell Potter with a $0.55 price target.
- Technology Metals (ASX:TMT), SG Fleet (ASX:SGF) and IDP Education (ASX:IEL) are giving off bullish charting signals according to Trading Central.

The ASX200 is eyeing a 0.6% lift at the open, which could erase some of yesterday’s 0.8% fall.

The UK continues its world leading vaccine rollout, extending vaccinations to those over 70.

All eyes are on commodity stocks as China’s economy rose more than expected in the fourth quarter, up 6.5%, taking yearly growth to 2.3%. This makes China the only country to grow last year.

Local trading ideas:
- Super Retail Group (ASX:SUL) was upgraded by UBS yesterday to a buy with a new $12.60 target.
- Mesoblast (ASX:MSB) was maintained as a Bell Potter speculative buy with a $5.10 target, implying 107% upside in a year from yesterday’s close.
- Chalice Mining (ASX:CHN), McMillan Shakespeare (ASX:MMS) and Catapult (ASX:CAT) are giving off bullish charting signals according to Trading Central.

The ASX200 is eyeing a 0.2% fall at the open to start the week.

US Presidential Elect Joe Biden is inaugurated in two days. Historically, Aussie equities have rallied in the year under a new presidency, with returns generally higher under democratic presidents. 

What to watch today and this week:
- All eyes will be on oil stocks, which are likely to pull back as the oil price fell 2% when China reported the highest number of daily COVID-19 cases.
- Employment data is out this Thursday and is expected to show 50,000 jobs were added to the economy in December. Keep an eye on banking and finance stocks which should rally if the number is better than expected.
- The US market is closed on Monday for the Martin Luther King Holiday.

Local trading ideas:
- Aroa Biosurgery (ASX:ARX) was reiterated as a speculative buy by Bell Potter with a $2.00 price target, suggesting 89% upside in a year from Friday’s close.
- UBS reiterated Whitehaven Coal (ASX:WHC) as a buy with a $2.15 target.
- Weebit Nano (ASX:WBT), BetMakers Technology (ASX:BET) and Fortescue Metals (ASX:FMG) are giving off strong bullish charting signals according to Trading Central.

 The Aussie share market has gained 2.2% so far this year and US shares are on a similar track, buoyed by an extra $US1.9T in economic stimulus. Plus, global economic growth looks positive once again...

In this week’s wrap, Jessica covers:

• (0:34) Why oil is likely to push higher
• (0:50) Standout stock: Whitehaven Coal (ASX:WHC) rising 14%
• (2:18) The direction of the Aussie share market
• (2:57) How you could benefit from increased commodity prices
• (4:11) Three tips when hunting for lithium stocks
• (5:34) What to watch next week

The ASX200 is eyeing a fall of 0.1% at the open.

Joe Biden unveiled his stimulus plan of US$1.9 trillion and the US senate will vote on impeaching Trump.

Johnson & Johnson’s one-dose COVID-19 vaccine trial showed a promising immune response.

What to watch today:

• Home and investment loans numbers are out with home loans expected to rise about 0.5% in November. 
• Following building permit numbers being released yesterday with building approvals rising 2.6% in November, Morgan Stanley upgraded brick maker Boral (ASX:BRL) to a buy with a $5.80 target.

Local trading ideas:

• Macquarie reiterated Bluescope Steel (ASX:BSL) as a buy with a $21.20 target, expecting strong uplifts in forecasts as the steel market remains strong. 
• Apiam Animal Health (ASX:AHX), Class (ASX:CL1) and Ava Risk Group (ASX:AVA) are all giving off strong bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.1% at the open following Wall Street closing mostly higher ahead of the US House impeaching President Donald Trump for a second time.

What to watch today:

• Building permit numbers are out today with building approvals tipped to have risen 2.6% in November, following the 3.8% lift in October supported by the record low interest rate.
• Rio Tinto (ASX:RIO) inked a new electricity contract with NZ power supplier Meridian Energy (ASX:MEZ) to keep Rio’s aluminium smelter operating until the end of 2024.
• Abacus Property Group (ASX:ABP) goes ex-dividend.

Local trading ideas:

• Morgan Stanley upgraded footwear business Accent Group (ASX:AX1), increasing its price target to $2.60, noting sales momentum should continue but will likely normalise by FY22.
• Audinate (ASX:AD8) was reiterated as a UBS buy with an $8 price target.
• Beach Energy (ASX:BPT), Uniti Group (ASX:UWL) and BetMakers Technology Group (ASX:BET) are giving off strong bullish charting signals according to Trading Central.

The ASX200 is eyeing a fall of 0.1% at the open. The expected pull back comes as Aussie scientists are calling for the AstraZeneca vaccine rollout to be paused given it’s only 62% effective. The Aussie Government pre-bought 54 million doses of the AstraZeneca vaccine, however Scientists say they prefer the Pfizer and Moderna vaccines as they are 95% effective.

Broad market sentiment remains high with the economy expected to recover this year, as a vaccine is said to be available in Australia as early as February.

What to watch today:

• Oil gained 1.7% overnight rising to a new 11-month high of US$53.17.
• Lithium stocks as the lithium price is clawing out of a 2-year bear market.

Local trading ideas:

• Citi increased Afterpay’s (ASX:APT) price target to $115 but maintained the stock as a hold, noting app downloads somewhat slowed in December.
• UBS reiterated CSL (ASX:CSL) as a buy with a $346 target. 21 blood-plasma collection centres have opened since July last year and UBS thinks CSL is on track to reach its FY21 target opening 20-30 centres as vaccine rollouts continue.
• Super Retail Group (ASX:SUL) was upgraded to a buy from a hold by UBS.
• ARB Corp (ASX:ARB), Race Oncology (ASX:RAC) and Think Childcare (ASX:TNK) are giving off strong bullish charting signals according to Trading Central.

The ASX200 is eyeing a fall of 0.1% at the open as US stocks pulled back from their record highs.

The Democrats are attempting to impeach US President Donald Trump, while Joe Biden is set to be inaugurated next week.

All eyes on commodities:

• As the oil price holds 11-month highs on Saudi’s output cut. Bell Potter’s favourites are Beach Energy (ASX:BPT), Cooper Energy (ASX:COE) and Whitehaven Coal (ASX:WHC).
• The iron ore price holds 9-year highs at US$168, but its price pulled back 0.3% overnight.
• The gold price rose 0.6% overnight.
• The copper price fell 3%, its sharpest fall since October 1 last year.

Local trading ideas:

• JP Morgan and Ord Monett upgraded Oil Search (ASX:OSH) to a buy from a hold.
• Citi upgraded Platinum Asset Management (ASX:PTM) from a sell to a hold.
• Citi downgraded Costa Group (ASX:CGC) from a buy to a hold.
• Telix Pharmaceuticals (ASX:TLX), IVE Group (ASX:IVE) and Bisalloy Steel (ASX:BIS) are all giving off strong bullish charting signals according to Trading Central.

The Aussie share market is suggesting a 0.1% gain at the open after the market rose 2.6% last week.

What to watch today:

• If Brisbane will end its 3-day lockdown at 6pm tonight or if it will be extended with a decision to be made this morning. 
• Australian retail sales data, which is expected to show a 7% jump in spending in November.

All eyes will be on commodities:

• Iron ore stocks could rise as the iron ore price rose to US$169, a new 9-year high.
• Gold stocks could see some selling after money poured back into equities, pulling gold down $112 in a week to US$1,835.

Local trading ideas:

• Citi upgraded ARB (ASX:ARB) to a buy with a $34.25 price target. 
• Bapcor (ASX:BAP) is rated as a buy by Citi following cars sales momentum. 
• ASX (ASX:ASX) is a Citi sell with a $68 price target. 
• Accent (ASX:AX1) was rated as a Citi buy as profit margins are expected to increase. 
• Humm Group (ASX:HUM), Harvey Norman (ASX:HVN) and Sonic Healthcare (ASX:SHL) are all giving off strong bullish charting signals according to Trading Central.