Between the Bells

Pressure is on the RBA to cut rates. After the US Central bank cut rates to zero, also launching a US$700 billion quantitative easing program, to offset the coronavirus economic impact. Meanwhile the Central NZ bank has cut its rate to 0.25%.

​All eyes on Fortescue Metals (ASX:FMG), Challenger (ASX:CCF), Reject Shop (ASX:TRS), oOH!media (ASX:OML), Air New Zealand (ASX:AIZ), Downer (ASX:DOW), Dominos (ASX:DMP) and Crown Resorts (ASX:CWN).

A 20% fall from all-time highs puts the ASX back into a bearish hibernation. Given travel and tourism account for 15% of world GDP, it's no surprise that the COVID-19 pandemic is creating severe market dislocation.

The estimates however tell a different story; if corona can be contained, Australia may just avoid a technical recession.

In this week's wrap, Jessica covers:

- No need to panic - markets will recover (0:40)
- Citi's insights: attractive buys & ASX predictions (2:01)
- Sector sale! Energy's batteries run flat (3:48)
- A word from Buffett (5:38)

Currently the Australian share market is down 2.4%, that’s less than the expected 3.5% drop the futures expected and less than the drops around the world. The S&P500 in the US lost about 4.9%. While the oil price fell 4.8% as Saudi Aramco asked to raise output capacity. 

In terms of the ASX sectors, the sectors that are outperforming the market are the staples, financials, telcos and IT. There are pockets of green as bargain hunters snap up stocks, which is why CIMIC (ASX:CIM) is up 2%, Woolworths (ASX:WOW) up 1% and WiseTech Global (ASX:WTC) up 3.4%.

The Australian share market futures are suggesting a 0.6% lift at the open, following the ASX200 rise of 3.1% yesterday.

The oil price has gained 10%, after suffering its sharpest fall since 1991. 

All eyes on Webjet (ASX:WEB) and Newcrest Mining (ASX:NCM).

The biggest company in Australia goes ex div, CSL (ASX:CSL), as well as metals and mining company, OZ Minerals (ASX:OZL) and pallet business, Brambles (ASX:BXB).

We saw global equities enter bear markets overnight. US stocks fell 7.6% - its biggest loss since 2008, while European equities lost 7.4% and the Aussie share market shed 7.3% yesterday.

It all comes as oil prices fell 30% after OPEC’s talks failed and Saudi Arabia said it would boost oil production in a bid to increase its supply and market share. 

Qantas (QAN) announced it's slashed international flights and roughs, cutting a quarter of international capacity for the next 6 months.

Newcrest Mining (NCM) rose 2.5% yesterday, outperforming the market and looking like it’s turned a corner from its February low. 

Finally, the Australian dollar has recovered from its fall yesterday and is now 1.2% higher at 65.87 US Cents.

We saw the Aussie share market traverse through the week, collecting a 0.7% loss Monday-Thursday. Investors topped up on their bond exposure, pushing the 10-year government bond yield to new lows.

We saw blood plasma company, CSL gain 2.4% over the last four days, and also overtake CBA as the biggest company on the market.

In this week's wrap, Jessica covers:
Agri-businesses welcome boost after rains hit Eastern Australian (0:29)
Bega Cheese takes the cake in this week's best and worst (0:53)
Defensive sectors hold firm: Telcos push ahead 3% (1:24)
Where the market is YTD (1:53)
Why a diversified portfolio can cushion market impacts (2:15)

Yesterday the ASX200 fell 1.7% but it looks like we should erase that loss as the Australian share market futures were up 1.8% at the open.

All eyes on: Brambles (ASX:BXB), NEXTDC (ASX:NXT), NAB (ASX:NAB), Newcrest Mining (ASX:NCM) and trade data balance for January.

Global equities markets have rallied with US equities galloping 4% ahead, taking US stocks out of correction territory. Stocks were also boosted as the US services sector grew stronger than expected in February and payrolls also jumped more than forecast in Feb.

In breaking news, the Australian economy grew more than expected in Q4 up 0.5%, more than the 0.3% on the cards – also rising 2.2% year on year. That slightly lifted the market but the ASX200 is tracking 1% lower around noon.

US stocks moved back into the red, when the Fed Reserve made an emergency 0.5% rate cut to 1.25%. It was not expected, which is why their market fell about 3%. And now, US President Trump is also calling for rates to be cut again to make US exports cheaper.

All eyes on goldminers, banks & Nextdc (ASX:NXT).

All eyes are on the RBA today, awaiting that key decision at 2.30pm with the the RBA’s rate indicator tipping rates will be cut to 0.5%.

Overnight US stocks enjoyed their biggest bounce back since 2009 with investors buying the dip. We saw US stocks snap their seven day losing streak with monumental gains being seen across all the indices and oil which gained 6% as Russia pledged to cooperate with OPEC. 

Aussie share market futures are suggesting the market will lift 1.1%/57 points. Yesterday the ASX200 lost 0.8% yesterday.

What else? Overnight Bell Potter upgraded Appen (ASX:APX), the machine and AI learning company from a Hold to a Buy, and expect its earnings for 2020 to come in higher than Appens’ forecast.  Yesterday Appen closed 7% higher at $22.20.

The ASX loses 6%, the AUD sinks to an 11 year low, and U.S equities fall to a 12 week low as coronavirus pandemic speculation takes hold.

In this month's wrap, Jessica covers:

• Healthcare sector delivers the goods once again (1:25)
• IDP Education (IEL) rises 34% to be this years YTD stock darling (1:51)
• What's next? (4:14)
• Key investment principals to keep in mind during the coronavirus crisis (4:38)