Between the Bells

Wall St closed mixed overnight as investors assess future potential rate cuts from the Federal Reserve following continuous inflationary pressures. The Dow Jones gained a quarter of a percent, the S&P500 jumped 0.16% and the tech-heavy Nasdaq fell by 0.06%.

Over in Europe, markets closed lower after regional economic sentiment fell in December, according to data. The STOXX600 closed Wednesday’s trading session 0.27% lower with most major sectors closing in the red. Germany’s DAX lowered by 0.05%, the French CAC lost nearly half a percent and over in the UK, the FTSE100 had a slight rise of 0.07%.

Locally yesterday, CPI data was the key driver of investor sentiment which led to a 0.77% rise for the key index at the closing bell of the midweek session. Australia’s monthly CPI data showed a rise of headline inflation to 2.3% in the 12-months to November, which is up from a the 2.1% reported in the year to October but indicates headline inflation remains in the RBA’s target 2-3% range. Yesterday’s gains were led by the materials and financial sectors which rose by 1.61% and 1.27% respectively. This was offset by the information technology sector which fell by 0.82% at the close of trade. 

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.37% at market open this morning.
• On the commodities front this morning,
   
  • Oil is trading 1.21% lower at 73 US dollars and 35 cents a barrel, gold is trading half a percent higher at 2663 US dollars an ounce and iron ore is trading 1.61% lower at 97 US dollars and 84 cents a tonne.

Trading Ideas:

• Bell Potter initiated coverage on Austin Engineering (ASX:ANG) with a buy rating and a 12-month price target of $0.86. With a current share price of $0.52, that indicates a share price growth of 65.4% over the next 12-months, hence the buy rating is maintained.
• And Trading Central has identified a bearish signal in AVITA Medical (ASX:AVH), indicating that the share price may fall from the close of $3.51 to the range of $2.65-$2.85, on a pattern formed over 32 days, according to the standard principles of technical analysis.

Over in the US on Tuesday, Wall Street closed lower across the major averages as fresh economic data and higher bond yields weighed on investor sentiment. The Dow Jones fell 0.42%, the Nasdaq lost 1.9% and the S&P500 ended the day down 1.11%. Fresh data from the Institute for Supply Management revealed faster-than-expected growth in the US services sector in December which raises investor concerns of inflation remaining sticky in the world’s largest economy.

In Europe overnight, markets mostly extended their recent rally to close higher on Tuesday as investors digested inflation data and key corporate results. The STOXX 600 added 0.32%, Germany’s DAX rose 0.62%, the French CAC lifted 0.6% and, in the UK, the FTSE 100 ended the day down just 0.05%. Annual inflation in the eurozone rose to 2.4% in December which is up from the 2.2% rise in November but was in line with economists’ expectations.

Across the APAC region on Tuesday, markets closed higher led by Japan’s Nikkei as a global tech rally boosted the growth sectors across markets in the region. Japan’s Nikkei rose 1.97% on Tuesday, South Korea’s Kospi Index advanced 0.14%, and China’s CSI index rose 0.72%.

The local market extended its rally into Tuesday with a gain of 0.33% on the back of a strong start to the week for US and European markets on Monday. Chip and tech stocks led the charge yet again early in the week as investor optimism for earnings growth potential continues to drive tailwinds for the high growth tech sector.

Once again yesterday, the mining giants came under pressure amid concerns over demand outlook for key commodities following further weak economic data out of China over recent weeks including manufacturing PMI, retail sales and trade balance data. Fortescue lost 4.4% on Tuesday, while BHP declined 0.7% and Rio ended the day down 0.7%.

Meanwhile, IDP Education rose almost 4% yesterday after Macquarie upgraded the stock to ‘outperform’ citing near-term consensus downgrades and the company’s 1H25 results as potential investing opportunities.

4D Medical shares rocketed over 16% yesterday after receiving FDA clearance for its AI-driven IQ-UIP lung diagnostic tool, designed to improve the diagnosis of Usual Interstitial Pneumonia, a key marker for Interstitial Pulmonary Fibrosis (IPF). The global IPF treatment market, valued at $4.01bn in 2024, is expected to grow to over $7.8bn in the next decade.

Elsewhere in the healthcare space, we saw Opthea soar over 7.5% after the clinical-stage biopharmaceutical company announced the publication of its Phase 1b trial of its lead product candidate for combination therapy in diabetic macular edema.

What to watch today:

• Ahead of the midweek trading session here in Australia the SPI futures are anticipating the ASX will open the day down 0.19% tracking Wall Street’s losses overnight.
• On the commodities front this morning oil has recovered from the recent dip to trade 0.97% higher at US$74.28/barrel, gold is up 0.63% at US$2651/ounce and iron ore is flat at US$99.44/tonne.
• The Aussie dollar has slightly weakened against the greenback to buy 62.41 US cents, 98.45 Japanese Yen, 50.01 British Pence and 1 New Zealand dollar and 11 cents.

Trading Ideas:

• Trading Central has identified a bearish signal on IRESS (ASX:IRE) following the formation of a pattern over a period of 18-days which is roughly the same amount of time the share price may fall from the close of $9.22 to the range of $8.15 to $8.35 according to standard principles of technical analysis.
• And Trading Central has identified a bullish signal on Jumbo Interactive (ASX:JIN) following the formation of a pattern over a period of 39-days which is roughly the same amount of time the share price may rise from the close of $14.12 to the range of $15.70 to $16.10 according to standard principles of technical analysis.

Wall Street started the new trading week in mostly positive territory as chip stock boosted the S&P and Nasdaq higher with gains of 0.55% and 1.24% respectively, while the Dow Jones lagged the market with a fall of 0.06%. Market optimism about tech stocks and the earnings growth potential remains elevated which continues to fuel strong tailwinds for the sector.

Over in Europe on Monday markets closed higher amid reports Trump’s team is considering a plan to impose tariffs on all countries but only on ‘critical imports’. The STOXX 600 rose 0.94%, Germany’s DAX added 1.56%, the French CAC climbed 2.24% and, in the UK, the FTSE 100 ended the day up 0.31%.

Across Asia on Monday, markets closed mostly lower as investors digested business activity and key data out in specific regions. China’s Caixin services PMI index from S&P Global rose to 52.2 in December, the fastest expansion since May last year. Despite this, China’s central bank said over the weekend it would implement a ‘moderately loose’ monetary policy in 2025. China’s CSI index fell 0.16% on Monday, Hong Kong’s Hang Seng lost almost 0.5% but South Korea’s Kospi Index rose 1.91%.

Locally, the ASX raced out of the gates this morning with a strong rally on the back of Wall Street’s strength on Friday before pulling back in afternoon trade to close just 0.08% higher as the miners weighed on the market gains despite the tech sector posting a 0.8% gain.
 The iron ore mining giants came under pressure yesterday amid a decline in the price of iron ore to below US$100/tonne. Singapore’s iron ore futures contracts falling below US$100/tonne were the key driver of the spot price decline today as traders exit amid easing demand for the commodity.

DroneShield fell over 1.5% on Monday despite the counter-drone technology producer announcing a $9.7m order from a major military customer in Latin America.

While Gold Road Resources rose 1.2% after reporting record quarterly production at the 50%-owned Gruyere project with 91,631 ounces of gold produced during the December quarter, significantly above the 68,781 ounces produced in the September quarter.

Insignia Financial shares soared over 14% yesterday to a 3-year high after the superannuation company announced it had received a $2.87bn takeover bid from US-based investment manager CC Capital Partners, which trumps the former takeover offer of $2.67bn from Bain Capital. The deal would provide CC Capital with access and market share into Australia’s estimated $4.1tn superannuation market which is considered to be the 4th largest in the world.

What to watch today:

• Ahead of Tuesday’s trading session on the ASX the SPI futures are anticipating the local market will open the day up 0.15%, extending on the positive finish from yesterday.
• On the commodities front this morning oil is trading 0.67% lower at US$73.47/barrel, gold is down just 0.06% at US$2636/ounce and iron ore has further weakened to trade down 1.16% at US$99.44/tonne.
• The Aussie dollar is buying US$0.62, 98.44 Japanese Yen, 50.09 British Pence and NZ$1.11.

Trading Ideas:

• Trading Central has identified a bullish signal on Macquarie Group (ASX:MQG) following the formation of a pattern over a period of 70-days which is roughly the same amount of time the share price may rise from the close of $224.47 to the range of $243 to $248 according to standard principles of technical analysis.
• And Trading Central has identified a bearish signal on Australian Ethical Investment (ASX:AEF) following the formation of a pattern over a period of 38-days which is roughly the same amount of time the share price may fall from the close of $5.15 to the range of $4.25 to $4.45 according to standard principles of technical analysis.

Wall Street closed the first trading week of the new year lower for the week but had a slight uplift on Friday as the 2024 darling chip stocks lifted the indices to a positive finish on Friday. The Nasdaq and S&P 500 each snapped 5-day losing streaks to close up 1.77% and 1.26% respectively while the Dow Jones ended the day up 0.8%.

Across the European markets on Friday, it was a red finish as markets in the region tracked the lower start for global markets in 2025. Automotive and travel stocks took the biggest hit on Friday across the board, while the STOXX 600 fell 0.5%, Germany’s DAX lost 0.6%, the French CAC fell 1.52%, and, in the UK, the FTSE100 ended the day down 0.44%.

Over in the APAC region on Friday investors extended the selloff in China as the CSI index fell 1.2% amid economic stability continues its struggle to regain momentum and growth post pandemic. Elsewhere in the region, South Korea’s Kospi index rose 1.8%, Japan’s Nikkei fell 0.96%, and Hong Kong’s Hang Seng ended the day up 0.7%.

Locally on Friday the ASX 200 rose 0.6% buoyed by energy stocks soaring 4.5% amid a rise in the price of oil late last week to a two-month high. Trading continues to remain subdued as investors are still on holidays.

Uranium miners rallied on Friday on supply shortage concerns after Canada’s uranium giant Cameco announced suspension of production at its Kazakhstan-based uranium operation.

What to watch today:

• Ahead of Monday’s trading session here on the ASX the SPI futures are anticipating the local market will start the new trading week up 0.28%.
• On the commodities front this morning oil is trading 1.14% higher at US$73.96/barrel, gold is down 0.76% at US$2638/ounce and iron ore is down 1.16% at US$99.44/tonne.
• The Aussie dollar is buying US$0.62, 97.76 Japanese Yen, 50.05 British Pence, NZ$1.11.

Trading Ideas:

• Bell Potter has slightly increased the 12-month price target on Champion Iron (ASX:CIA) to $7.15 and maintain a buy rating on the iron ore producer following the announcement that the company has entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to form a partnership for the joint ownership and development of the Kami Project. The analyst sees CIA will benefit from maturing high-grade iron concentrate markets and a shift into higher grade production in 2H 2025.
• And Trading Central has identified a bullish signal on QBE Insurance (ASX:QBE) following the formation of a pattern over a period of 23-days which is roughly the same amount of time the share price may rise from the close of $19.69 to the range of $21.00 to $21.40 according to standard principles of technical analysis.

In the final Weekly Wrap of 2024, Grady recaps a year of strong performance for the ASX. Key factors for 2025 include potential rate cuts, China’s economic recovery, and the impact of new US trade policies. The healthcare sector is poised for growth, and the ASX is expected to rise further.   

In this week’s wrap, Grady covers:

• (0:11): how the ASX performed in 2024
• (0:39): China’s economic recovery & growth rate
• (3:38): why the healthcare sector underperformed
• (4:37): the best & worst performing stocks on the ASX this week
• (5:35): the most traded stocks by Bell Direct clients
• (6:02): economic news items to watch out for.

Wall St closed sharply lower on Wednesday as investors responded to disappointing rate outlook out of the Fed’s last FOMC meeting for the year. The Dow Jones posted its 10th straight losing session with a decline of 2.58%, while the S&P500 tumbled 2.95% and the Nasdaq tanked 3.56%. The Fed lowered the US cash rate to 4.25%-4.5% as expected at the final Fed rate meeting of the year but investors were more focused on the commentary out of the Fed that it will only cut rates twice in 2025, which is half the number of cuts previously forecast out of the US central bank.

Over in Europe on Wednesday, market closed slightly higher as investors responded to UK inflation data and awaited the Fed’s rate decision in the US. The STOXX 600 rose 0.16%, Germany’s DAX closed flat, the French CAC rose 0.26%, and, in the UK, the FTSE100 ended the day up 0.26%. UK inflation data showed inflation in the region rose to 2.6% in November which was in line with economists’ expectations.

Across the Asia region overnight, markets closed mixed on Wednesday ahead of Japan’s Central Bank interest rate decision later this week. Japan’s Nikkei fell 0.72%, South Korea’s Kospi Index rose 1.12%, and Hong Kong’s Hang Seng rose 0.95%.

The local market closed virtually flat on Wednesday with a 0.06% close in the red as a sell off in consumer discretionary and financial stocks weighed on gains from industrials and healthcare stocks. The flat reading on Wednesday was due to investors sitting on the sidelines awaiting the Fed’s final rate decision for 2024 due out over the coming days.

Vulcan Energy's shares rose 1.9% after securing a €879 million ($1.4 billion) loan commitment for its €2.2 billion Phase One Lionheart Project in Germany. The financing, involving Export Finance Australia and seven commercial banks, will support the development of Vulcan's geothermal lithium project.

What to watch today:

• Ahead of Thursday’s trading session on the key index the SPI futures are expecting the ASX will open the day down 1.61%, tracking Wall Street’s tumble overnight.
• On the commodities front this morning oil is down 0.34% at US$70.05/barrel, gold is down 2.22% at US$2588/ounce, and iron ore is up 0.16% at US$105.58/tonne.
• The Aussie dollar has weakened against most currencies overnight to buy US$0.62, 96.31 Japanese Yen, 49.69 British Pence and NZ$1.10.

Trading Ideas:

• Bell Potter has initiated coverage of James Hardie Industries (ASX:JHX) with a buy rating and 12-month price target of $64. The analyst sees James Hardie has significant growth potential in the North American market where it currently has a strong market leadership position. The analyst sees JHX is one of the most defensive and high-quality companies leveraged to the US housing market.
• Trading Central has identified a bullish signal on Humm Group (ASX:HUM) following the formation of a pattern over a period of 17-days which is roughly the same amount of time the share price may rise from the close of $0.69 to the range of $0.88 to $0.92 according to standard principles of technical analysis.

Over in the US on Tuesday, all eyes are on the Fed as the final FOMC meeting for 2024 kicks off today with the expectation that the US central bank will announce a second cut to the nation’s cash rate to end 2024 with a cash rate of 4.25% to 4.5%. The Dow Jones broke a record overnight after posting its 9th straight losing day, the longest streak since 1978, while the S&P500 lost 0.4% and the Nasdaq ended the day down 0.32%.

Across Europe overnight, markets closed mostly lower as investors await key central bank decisions out later in the week. The STOXX 600 fell 0.41%, Germany’s DAX lost 0.33%, the French CAC rose 0.12%, and, in the UK, the FTSE100 ended the day down 0.81%. The Bank of England meets on Thursday this week with markets pricing in only a slight chance of a final rate cut for the year.

And across the Asia region on Tuesday, markets closed lower with Japan’s Nikkei falling 0.24%, while South Korea’s Kospi Index lost 1.29%, and Hong Kong’s Hang Seng ended the day down almost half a percent.

The local market overturned the recent red run to close higher on Tuesday as a rebound in healthcare stocks and the big banks boosted the key index to a 0.78% gain at the market close. Industrials stocks led the gains on Tuesday followed by the two growth sectors of tech and real estate, while materials and energy stocks came under pressure following the release of weak economic data out of China on Monday.

ANZ Roy-Morgan consumer confidence data also out yesterday impacted investor sentiment as consumer confidence dropped 1.6 points to 83.9 points in mid-December following a strong period of spending in the Black Friday sales period for Aussie consumers.

Battery metals and tech company Novonix rallied 5.5% yesterday after the company announced it has received a conditional loan worth US$755m from the US department of energy to proceed with the construction of a manufacturing plant in Tennessee for the production of synthetic graphite, a key ingredient of lithium-ion batteries.

Star Entertainment Group’s challenges escalated yesterday after Kate Williams, who was appointed deputy company secretary in July this year, became the latest of a number of the leadership team to stand down amid a very challenging time for the casino operator over the last 12-months. Just days ago, Mark Mackay resigned as Chief Executive Officer of the Star’s Gold Coast operations effective immediately, after just over 3 months in the role. Shares in Star are down 63% YTD. The casino operator did however also announce today the appointment of a new group CFO, Mr Frank Krile who, if approved through required processes, brings extensive experience from his time at Lendlease.

Data 3 shares tumbled 9.84% after the company announced changes to the incentives it receives for the provision of Microsoft services effective from January 1, 2025. The reduction in incentives earned by Data 3 from its provision of Microsoft services is expected to impact FY24 gross profit by 3% but is not expected to have a material impact on future earnings according to the release by Data 3 yesterday.

What to watch today:

• Ahead of the midweek trading session here in Australia the SPI futures are anticipating the ASX will open Wednesday’s session down 0.17% taking lead from Wall Street’s slide overnight.
• On the commodities front this morning, oil is trading 1.18% lower at US$69.87/barrel, gold is down 0.25% at US$2644/ounce, and iron ore is up 0.1% at US$105.41/tonne.
• The Aussie dollar has further weakened against the greenback overnight to buy US$0.63, 97.23 Japanese Yen, 50 British Pence and NZ$1.10.

Trading Ideas:

• Bell Potter has maintained a sell rating on Fortescue (ASX:FMG) but have raised the 12-month price target on the mining giant following some recent share price appreciation. The analyst sees slight EPS growth in 2025 based on slightly higher iron ore pr

Join us as we conclude our 2024 Meet the Analyst series with a bang. Our Market Analyst, Grady Wulff, sits down with Bell Potter’s analysts John Hester and Thomas Wakim for a comprehensive discussion on the healthcare sector.

From deciphering Neuren Pharmaceuticals (ASX:NEU) share price fluctuations to anticipating the news flow that will share 2025 guidance and identifying why Telix Pharmaceuticals (ASX:TLX) and Clarity Pharmaceuticals (ASX:CU6) are stocks to watch in the new year, John and Thomas cover it all in this final episode of the year.

In this video, John and Thomas discuss:

• (1:48): the headwinds & tailwinds facing the healthcare sector
• (7:10): why they are bullish on Neuren
• (13:48): opportunities in healthcare stocks for 2025
• (15:18): what's on their clinical data radar for the upcoming year.

Wall St closed mixed overnight as the Dow fell for the 8th straight session, whilst the Nasdaq closed at another record high. The Dow Jones fell 0.25%, the S&P500 gained 0.38% and the tech-heavy Nasdaq rose by 1.24%.

Over in Europe, markets closed lower as the STOXX600 lost 0.14% with the majority of sectors closing in the red. Losses were led by autos stocks which fell 3%. Germany’s DAX lost 0.45%, the French CAC closed 0.71% lower and over in the UK the FTSE100 ended Monday’s trading session 0.46% in the red.

Locally yesterday the ASX200 fell 0.56% with most sectors closing in negative territory. Losses were led by the materials and real estate sector which dropped by 2.04% and 1.35% respectively. This was offset by the financial sector which rose by 0.17% by market close.

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.17% at market open this morning.
• On the commodities front this morning,
   
  • Oil is trading over 1% lower at 70 US dollars and 56 cents a barrel after economic data coming out of China indicated a weakening aggregate demand from the worlds top oil importer.
  • Gold is trading 0.18% higher at 2651 US dollars an ounce and iron ore is trading 0.17% lower at 105 US dollars and 31 cents a tonne.

Trading Ideas:

• Bell Potter maintains a buy rating on Southern Cross Electrical Engineering (ASX:SXE) with a 12-month price target of $2.25. With a current share price of $1.43, this indicates a share price growth of 57.3% over the next 12-months, hence the buy rating is maintained.
• And Trading Central has identified a bearish signal on Lendlease Group (ASX:LLC), indicating that the stock price may fall from the close of $6.43 to the range of $5.65-$5.80, on a pattern formed over 68 days, according to the standard principles of technical analysis.

Wall St closed mixed on Friday as investors reassessed their positions ahead of the Fed’s anticipated rate cut this week at the final FOMC meeting for 2024. The Dow Jones fell 0.2% to track its 7th straight losing session in the longest red run since 2020, while the Nasdaq gained 0.12% on Friday and the S&P 500 ended the session flat.

Across the European region on Friday, markets closed lower as investors reacted to disappointing economic data readings from the region’s largest economies, with UK GDP showing economic contraction by 0.1% in October, and Germany’s exports declined 2.8% in October. The STOXX 600 fell 0.62% on Friday, while Germany’s DAX, the French CAC and UK FTSE100 each lost around 0.15%.

Across the Asia Region on Friday, markets closed lower as investor optimism for further Chinese stimulus faded. Hong Kong’s Hang Seng lost 1.83% on Friday, China’s CSI index fell 2.37%, and Japan’s Nikkei ended the day down 0.95%.

The ASX200 fell 0.41% on Friday as sharp selloff in the materials sector weighed on the key index, while financial and energy stocks were the only sectors to end the day higher. The index had its worst week in months last week as investors took profits from the recent rally that sent the ASX200 to record highs.

DigiCo debuted on the ASX on Friday in a highly anticipated debut that had a very disappointing reception from investors. The data centre infrastructure REIT ended its first session at $4.55/share, down from the $5 of its IPO.

What to watch today:

• Ahead of Monday’s trading session on the ASX, the SPI futures are anticipating the local market will begin the new trading week down nearly half a percent.
• On the commodities front this morning, oil is trading 1.81% higher at US$71.29/barrel, gold is down 1.25% at US$2647/ounce and iron ore is down 0.17% at US$105.31/tonne.
• The Aussie dollar has further weakened to buy US$0.63, 97.63 Japanese Yen, 50.41 British Pence and NZ$1.10.

Trading Ideas:

• Bell Potter has initiated coverage of Vitrafy Life Sciences (ASX:VFY) with a spec buy rating and 12-month price target of $2.36. Vitrafy aims to become a global leader in cryopreservation by significantly improving cell survival of biological materials. The analyst sees high growth potential in VFY’s three areas of exposure to broad global market themes, each also material in size. Aquaculture & Bovine reproduction, Blood Platelets and Human Cell & Gene Therapy each have global addressable markets over US$3bn in size and have significant growth potential for VFY.
• And Trading Central has identified a bearish signal on Sims (ASX:SGM) following the formation of a pattern over a period of 25-days which is roughly the same amount of time the share price may fall from the close of $12.73 to the range of $11.20 to $11.50 according to standard principles of technical analysis.