Between the Bells

The Aussie share market is having another positive day, rising 3.1% in the first 40 mins following yesterday’s 7% gain, best one day gain since 1980. 

We also had positive leads from the get go. Wall Street started its trading week on positive ground, with the benchmark S&P500 up 3.4%. 

Investors will be watching Credit Cord (ASX:CCP), Star Entertainment (ASX:SGR) and Nine Entertainment (ASX:NEC).

In February 2020, unemployment was low, and the share market was at an all-time high. Since then, we've seen the Aussie share market fall 30% from it's peak. Unsurprisingly in this risk off environment, defensive sectors are outperforming.

In this month's wrap, Jessica covers:

• Metcash (ASX:MTS) – cashes in on panic buying as top performing stock of the month (1:03)
• Can the past teach us something about the future? (1:45)
• What the data says – markets predicted to rebound next year (2:48)
• Using Bell Direct’s Strategy Builder tool to pick your next stock (4:06)
• Dollar cost-averaging investing strategy (5:14)

As the Aussie share market picks back up, global equities are expected to follow. However, we aren't out of the woods yet given the persistent pressure from travel bans and other precautionary measures.

In this week's wrap, Jessica covers: 

• Stocks in the spotlight - Afterpay (ASX:APT) up 56% (0:40)
• Where are we headed? Global productivity down, but government stimuluses are picking up the pieces (1:41)
• Where to find the most upside (3:56)
• Healthcare stocks to watch (5:25)
• How to find 'quality' ETFs (7:35)

The futures are suggesting a small bounce of 0.87% or 39 points for the Aussie share market, even as the COVID-19 pandemic continues to spread.

We saw tens of thousands of out-of-work Australians try to claim unemployment benefits, causing lines hundreds of metres long at physical Centrelink locations and for the MyGov website to crash.

ASX-listed medical equipment maker, ResMed (ASX:RMD) have said they are looking to “double or triple” its output of ventilators, and scale up ventilation mask production more than tenfold, as the world scrambles to fight coronavirus. 

Nick Scali (ASX:NCK) and baby furniture and equipment chain Baby Bunting (ASX:BBN) have reported positive sales momentum to date and a pickup in activity by Chinese suppliers. 

On the flipside, jewellery retailer Michael Hill (ASX:MHJ) has decided to postpone its 1.5 cents per share interim dividend for six months.

The Aussie dollar buys 57 US cents.

The Aussie share market futures are suggesting a fall at the open of around 1.81%, despite the Prime Minister and Treasurer yesterday unveiling $66bn worth of measures to help cushion the blow from COVID-19.

Last night, Prime Minister Scott Morrison announced the drastic steps that will be taken in a bid to stop the spread of COVID-19. Pubs, clubs, cinemas, churches, places of worship and indoor sporting venues including gyms, will be shut down from midday today. While, restaurants and cafes would only be open for takeaway. As for schools, he said children ‘should go to school today' and that there was ‘no change’ to the health advice from authorities. He said parents who were concerned, have the right to keep their children at home.

US, stocks tried to rally on Friday, but weren’t successful, as we saw Wall Street end its most volatile week since 2008. 

All eyes on Beach Energy (ASX:BPT), Woodside Petroleum (ASX:WPL), Newcrest Mining (ASX:NCM), St Barbara (ASX:SBM) and AP Eagers (ASX:APE).

As global borders shut down, companies are abandoning their earnings forecasts. Why? It seems people are coming to terms with the fact that COVID-19 could be around for a while. Governments and central banks meanwhile, attempt to combat the economic downturn.

In this week's wrap, Jessica covers:

- ASX down 28% YTD (0:42)
- Fisher & Paykel Healthcare sees boost amidst COVID-19 (1:21)
- Supermarkets projected by UBS to lift (1:49)
- Containing the blaze: the parts of the market most affected (2:32)
- A few ideas from Morningstar (4:00)
- Some ways to think about diversification (5:35)

The Aussie share market gained 2.7% in the first hour of trade and at around 1pm was sitting 4.4% higher. This was fuelled by a rally on overseas equities after Donald Trump signed a bill that expands paid leave for workers amid the coronavirus lockdowns, inking a stimulus package potentially worth US$1 trillion. We also saw the oil (WTI) price gaining 23%, its biggest one-day move ever.

Stand out stocks include Afterpay (ASX:APT), Cimic (ASX:CIM), Scentre (ASX:SCG), Mirvac (ASX:MGR), Goodman Group (ASX:GMG) and Corporate Travel Management (ASX:CTD).

The Aussie share market gained 2.6% in the first 30 minutes of trade, (but is now tracking 0.5% lower) fuelled by positive news in Europe as the European Central Bank (ECB) just launched a $750 billion stimulus package. Secondly- the market is rallying ahead of the Reserve Bank of Australia’s 2.30pm decision, with rates expected to be cut to 0.25%. Finally, for quantitative easing to be introduced - to inject new money into the economy to support businesses.

The only sector in the red earlier was the energy sector- as the oil price fell to a new 18- year low of US$22.45. Pressure remains on travel related stocks like Flight Centre (ASX:FLT) down 20%, and Corporate Travel Management (CTD) down 16% with Qantas stooping international flights later this month.

The Aussie dollar also hit a new 17 year low, 57.87 US cents. That’s where it last traded in January 2003. It’s bad for importers and great for our exporters.

Today, the Australian PM banned international travel and indoor gatherings of 100 people. He also called upon the stockpiling behavior to stop.

Yesterday, we heard that the Australian government pledged $715 million to support our airliners via refunds and waivers with $159 million of that being an upfront benefit. We also heard from some states and territories as to how they will support the workforce, which is why the Aussie share market gained 5.8%. 

All eyes are on Virgin (ASX:VAH), Ramsay Health (ASX:RHC), Aristocrat Leisure (ASX:ALL), Mirvac (ASX:MGR) and Afterpay (ASX:APT).

More government stimulus is being planned in the U.S to combat coronavirus, with Trump weighing up a $1 trillion stimulus package that includes cash payments, support for small business and the airlines. The news helped the US benchmark indices take back half of what they lost from the day before.

Yesterday the ASX200 shed 9.7%, which wiped off the 4.4% Friday gain. It was also the market's biggest loss since 1987. 

Countries are closing their borders and stocks continue to fall with Trump's words causing some Airlines bounce.

All eyes on Coca-Cola (ASX:CCL), Estia Health (ASX:EHE), New Zealand King Salmon (ASX:NZK), Cochlear (ASX:COH) and BHP (ASX:BHP).