Between the Bells

This week was arguably the biggest week on the US reporting season calendar. We saw some of the world’s largest tech companies release quarterly results which impacted global markets. 

Investors were not impressed with some of the Magnificent 7 reports and we detail why. 

In this week’s wrap, Grady covers:

• (0:11): what the Magnificent 7 stocks are
• (1:14): investor concerns with Tesla’s warning of headwinds
• (1:36): Microsoft topping expectations across all metrics
• (2:01): disappointing results from Alphabet shares
• (2:15): mixed emotions sparked by Apple, Amazon, and Meta results
• (4:02): expectations from local earnings season, retailers, iron ore miners, and AI
• (6:35): the most traded stocks & ETFs by Bell Direct clients
• (7:08): economic data to watch next week.

Wall St has closed higher as Apple and Amazon are set to release their earnings reports after the bell. The Dow Jones closed 0.97% in the green, the S&P 500 rose 1.25% and the tech-heavy Nasdaq rallied 1.30%.

In terms of US stocks, tech shares rallied with Apple and Amazon both jumping 1% and 2% respectively. Both are set to release their earnings after market close.

US unemployment data is also set to be released later tonight with a forecast of 3.7%, the same as its previous result.

Over in Europe, markets closed lower after the Bank of England held interest rates steady. The STOXX600 closed half a percent lower, led by mining stocks which fell 1.3%. Germany’s DAX lost 0.26%, the French CAC fell 0.89% and over in the UK the FTSE100 ended the day 0.11% in the red.

Locally yesterday, markets closed 1.20% lower with all major sectors finishing in the red. Losses were led by the financial and real estate sectors of 1.81% and 1.67% respectively.

What to watch today: 

• The Australian share market is set to open higher, with the SPI futures suggesting a rise of 0.36% at market open this morning.
• On the commodity front this morning,
  • Oil is trading down 2.32% to US$74.10 cents a barrel, following the OPEC committee confirming that members are maintaining production cuts. 
  • Gold is trading up 0.90% to US$2055 an ounce, following the release of the latest economic data coming out of the US. 
  • And iron ore is trading 2.21% lower at US$133 a tonne. 

Trading Ideas:

• Bell Potter maintains a buy rating on Regal Partners (ASX:RPL), despite slightly decreasing its price target. The buy rating is maintained by Bell Potter, following net inflows in the last quarter of $108 million, largely from the launch of the Regal Resources High Conviction Fund and the Regal Partners Private Fund. With these figures and the company adding new strategies, RPL has become more diversified, hence reducing risk.
• And trading central has identified a bullish signal in Hansen Technologies (ASX:HSN), indicating that the stock price may rise from the close of $5.18 to the range of $5.47-$5.55 on a pattern formed over 38 days, according to the standard principles of technical analysis.

Wall St closed lower overnight, following the announcement from Federal reserve chairman Jerome Powell that the US central bank will not be likely to cut rates in March. The Dow Jones lost 0.82%, the S&P 500 fell 1.61% and the tech-heavy Nasdaq ended the day 2.23% in the red.

In terms of US stocks, Alphabet fell more than 6% following disappointing ad revenue results overshadowed better than expected earnings and sales.

Over in Europe, markets closed marginally higher as corporate earnings continues. The STOXX600 ended the day 0.1% higher with autos stocks up 1.1% whilst retail stocks fell 2.1%.  Germany’s DAX closed 0.40% lower, the French CAC ended the trading day down 0.27% and over in the UK the FTSE100 fell just under half a percent.

Locally yesterday, markets rallied following the release of important inflation data which saw the monthly CPI indicator slow to 3.4% in December, 0.2% lower than the forecast. Markets closed just over 1% higher yesterday with all major sectors finishing in the green. The biggest gains were made by the real estate and utilities sectors which gained 2% and 1.70% respectively.

What to watch today: 

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of just over 1% at market open this morning.
• On the commodities front this morning,
  • Oil is trading down 2.8% to US$75.67 a barrel after Chinese manufacturing activity contracted for the fourth consecutive month. 
  • Gold is down 0.11% to US$2033 an ounce, following the announcement that US interest rates will remain steady. 
  • And iron ore is trading 1.81% lower at US$136 a tonne.

Trading Ideas:

• Bell Potter maintains a buy rating on Select Harvests (ASX:SHV) and has increased its 12-month price target on the almond producer to $4.70. The buy rating is maintained by Bell Potter, following firming in the USD almond pricing and solid crop production forecasts for the upcoming season set to uplift the EBITDA over FY24-FY25.
• And Trading Central has identified a bullish signal in Stockland Corp (ASX:SGP), indicating that the stock price may rise from the close of $4.56 to the range of $4.74-$4.78 over 25 days, according to the standard principles of technical analysis.

In Europe overnight, markets extended the week’s rally into Tuesday’s session as investors assessed preliminary fourth-quarter GDP figures for the eurozone which came in at a flat reading for the third quarter, indicating the eurozone economy stabilised and narrowly missed a recession. The STOXX600 and Germany’s DAX each rose 0.18% on Tuesday, while the French CAC added just under half a %, and in the UK, the FTSE100 rose 0.44%.

Wall St closed mixed on Tuesday as investors look ahead to the Fed’s interest rate decision on Wednesday US time with markets expecting the Fed to maintain rates at the current level and not cut prematurely. The S&P500 closed flat, the Dow Jones ended the day up 0.3% and the Nasdaq fell 0.6%.

General Motors shares jumped 8% on Tuesday after the automaking giant posted better-than-expected earnings, while Starbucks shares are down in after hours trading after the coffee giant released disappointing earnings results.

In Asia, markets mostly fell on Tuesday with Hong Kong’s Hang Seng leading the losses as markets digested the fallout from the liquidation of embattled property developer, Evergrande.

The local market is hovering in record territory with the ASX closing 0.3% higher on Tuesday as earnings season ramps up and favourable economic data boosts investor sentiment for a soft landing both at home and in the US. The tech sector took strong lead from the tech-heavy Nasdaq overnight as the local high growth sector rose almost 2% yesterday.

While we are hovering around all-time index highs, it is important to realise the market gains are not across the board and some sectors are rallying against market expectations, for example China’s struggling property sector would traditionally have weighed on iron ore prices as the country Australia’s largest iron ore importer, however, the price of iron ore is us around US$135/tonne on expected stimulus out of the Chinese government.

Megaport jumped over 29% during trade yesterday after the cloud connectivity provider said its revenue increased 5% to $48.6m in the latest quarterly update.

City Chic recovered ground yesterday rising 22% as offshore buyers circle the company’s North America business.

Nickel Industries also soared 22% yesterday after the Indonesian-based nickel producer announced an increased dividend and unveiled a share buyback valued up to $151m.

Aussie retail sales data for December out yesterday came in at a decline of 2.7% which was attributed to a few reasons. Firstly, the black Friday and cyber-Monday sales period saw $9bn spent across the four days, a 22% rise on 2022, in a sign that many Aussies snapped up the bargains ahead of the December period. Additionally, the high interest rate environment we are currently in meant a lot of Aussies continue struggling with the high cost of living thus reducing discretionary spend all together, especially in the December period.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are expecting the ASX to open the midweek session flat following the mixed session on Wall St overnight.
• On the commodities front this morning, oil is trading 1.4% higher at US$77.81/barrel, gold is up 0.08% at US$2033/ounce and iron ore is up 0.73% at US$138.50/tonne.
• AU$1.00 is buying US$0.66, 97.40 Japanese Yen, 52.10 British Pence and NZ$1.08.

Trading Ideas:

• Bell Potter has increased the rating on Mader Group (ASX:MAD) from a hold to a buy and has raised the 12-month price target on the leading provider of specialised contract labour following the release of the company’s December quarter update including revenues of $189.3m, which was driven by the Australia business outperforming the rest of the world with $141m. The company also reiterated FY24 revenue and NPAT guidance and paid down net debt over the period.

Wall Street rose back into record territory on Monday with the S&P500 ending the day up 0.76% at a fresh record high as investors assessed several tech giant earnings reports and ahead of the Fed’s interest rate decision announced tomorrow. The Dow Jones ended Monday’s session up 0.6% and the tech-heavy Nasdaq advanced 1.12% as we head into the busiest week of earnings results for the February reporting season. Microsoft, Apple, Meta, Amazon and Google parent company, Alphabet, are all set to release results this week which will likely spark movements for the Nasdaq, while Boeing and Merck also releasing results this week may spark movements on the Dow Jones.

As the Fed’s FOMC meeting kicks off on the 30th January US time, traders are factoring in a 97% chance the Fed will not cut rates at the January FOMC meeting. The current market sentiment is that in order to maintain the current rally on Wall Street, earnings need to meet expectations, the Fed needs to provide outlook and positive guidance on the rate front, and later this week, US jobs numbers will need to remain resilient but not too hot.

Over in Europe, markets started the week mixed ahead of key earnings results being released in the region, as well as economic data and bank announcements released later this week. The STOXX600 rose 0.2% led by oil and gas stocks rising 1%, while Germany’s DAX fell 0.12%, the French CAC lifted 0.09% and, in the UK, the FTSE100 ended the day mostly flat.

Across the Asia markets on Monday, stocks closed mostly higher ahead of key fourth-quarter GDP data out of Taiwan and Hong Kong later this week while Singapore’s central bank left its policy unchanged, as expected, on Monday. Chinese authorities have also moved to make it more difficult for investors to ‘short’ Chinese stocks as China’s stock markets have been among the worst performing in the world this year so far amid the ongoing sluggish economic recovery in the region post-pandemic.

Shares in embattled Chinese property developer, Evergrande, halted trading on Monday after Hong Kong’s high court ordered the liquidation of the company following the failure of an 11th- hour restructuring deal over the weekend.

Locally on Monday, the ASX200 rose for a sixth straight session, end the day up 0.3% at the closing bell, led by the energy sector climbing 1.83% on rising tensions in the Red Sea, while technology stocks weighed on the market.

Gold Road Resources tanked over 18% on Monday after the gold producer revealed its latest quarter production was lower QoQ due to delays accessing higher grade ore from the company’s open pit, on top of labour availability impacting the mining rate at the company’s operations.

What to watch today:

• Ahead of the local trading session here in Australia, the SPI futures are expecting the ASX to open Tuesday’s session up 0.5% ahead of December’s retail sales data out later this morning.
• On the commodities front this morning, oil is trading down 1.3% at US$76.98/barrel, gold is up 0.65% at US$2031/ounce and iron ore is flat at US$137.50/tonne.
• AU$1.00 is buying US$0.66, 97.51 Japanese Yen, 51.97 British Pence and NZ$1.08.

Trading Ideas:

• Bell Potter has maintained a buy rating on Gold Road Resources (ASX:GOR) but has lowered the 12-months price target from $2.05 to $1.80 after the gold producer released a Q4 CY23 update including production at its 50%-owned Gruyere Gold Mine had been impacted by labour availability issues and the issuance of lowered CY24 production guidance to allow for labour issues.
• And Trading Central has identified a bearish signal on Mader Group (ASX:MAD) following the formation of a pattern over a period of 99-days which is roughly the same amount of time the share price may fall from the close of $6.65 to the range of $4.20 to $4.60 according to standard principles of technical analysis.

Wall Street closed higher across the key indices on Friday as favourable economic data strengthened investor sentiment in the U.S. economy. The S&P500 rose for a sixth straight session, ending the day up 0.53%, the Dow Jones rose 0.64% and the tech-heavy Nasdaq added 0.18% despite Tesla shares slumping over 13% after the EV giant posted disappointing fourth-quarter results and warned of lower vehicle volume growth for the year ahead.

US GDP data out late last week indicated the world’s largest economy grew at a rate of 3.3% in Q4 which was well above economists’ expectations of a 2% growth and provides further support that the U.S. economy remains resilient despite the currently high interest rate environment.

Personal consumption expenditures data out of the US also pointed in the right direction for economy stability against inflation falling in fresh data out last Thursday. The PCI data, a preferred measure of inflation for the fed, showed an increase of 2% for the latest quarter.

Over in Europe, markets closed at a two-year high on Friday as investors welcomed a slew of favourable economic data, the ECB’s latest rate decision and corporate fourth quarter earnings results. The STOXX600 rose 1.1% on Friday led by household goods jumping 5.2%. Germany’s DAX ended Friday’s session up 0.32%, the French CAC added 2.28%, and, in the UK, the FTSE100 rose 1.4%.

Luxury brand retailer LVMH jumped 13% on Friday after posting strong fourth quarter results indicating sales which is a key boost for the luxury market in a time of slowing consumer spend.

The European Central bank also met market expectations late last week by maintaining the ECB interest rate steady at 4% for a third straight time.

Across the Asia markets on Friday, stocks mostly declined as investors piled out of EV stocks in the region amid concerns of slowing demand, while investors also digested inflation data out of Tokyo. Hong Kong’s Hang Seng dropped 1.8% on Friday, China’s CSI ended the day down 0.27%, and Japan’s Nikkei fell 1.34%. Japan’s inflation reading for January came in softer compared to December’s reading at 1.6% growth YoY and below the 1.9% rise economists were expecting.

Locally on Friday, the ASX200 was closed for the Australia day public holiday.

What to watch today:

• Ahead of the first trading session for the week here in Australia, the SPI futures are expecting the ASX200 to open the first trading day of the week up 0.19%.
• On the commodities front this morning, oil is up 0.84% at US$78.01/barrel, gold is down 0.07% at US$2018.38/ounce and iron ore is up 1.10% at US$137.50/tonne.
• AU$1.00 dollar is buying US$0.66, 97.43 Japanese Yen, 51.74 British Pence and NZ$1.08.

Trading Ideas:

• Bell Potter has maintained a sell rating on Fortescue (ASX:FMG) but has slightly increased the price on the big miner following the release of the company’s December quarter results including iron ore shipments coming in-line with Bell Potter expectations, however, water supply disruptions continued to impact high grade magnetite production at Iron Bridge and FY24 guidance has been lowered again.
• And Trading Central has identified a bearish signal on Boral (ASX:BLD) following the formation of a pattern over a period of 29-days which is roughly the same amount of time the share price may fall from the close of $5.26 to the range of $4.92 to $4.98 according to standard principles of technical analysis.

Wall St closed mixed overnight as technology stocks were boosted following a rally from Netflix. The Dow Jones ended the session down 0.26%, the S&P 500 finished 0.08% higher and the tech-heavy Nasdaq gained 0.36%.

Netflix shares jumped 10% after they reached an all time high of 260.8 million subscribers with revenue toppling analyst expectations.

Over in Europe, the STOXX 600 rallied 1.15% higher with all sectors but telecoms finishing in the green, following the release of euro zone PMI data showing improved economic activity. Germany’s DAX ended the trading session 1.58% higher, the French CAC gained 0.91% and over in the UK, the FTSE100 finished in the green by over half a percent.

Locally yesterday, markets closed just 0.06% higher with the materials and real estate sector up 1.31% and 0.93% respectively. This was offset by the information technology sector which lost 1.15%.

What to watch today:

• The Australian share market is set to open higher, with the SPI futures suggesting a rise of 0.2% at the open this morning.
  • On the commodity front this morning,
     Oil is up 1.18% to US$75.23 a barrel, following a larger-than -expected decline in US crude stockpiles. 
  • Gold is down 0.81% to US$2012 an ounce following the announcement of strong PMI data in the US. 
  • And iron ore is trading 0.75% higher at US$133.50 a tonne.

Trading Ideas: 

• Bell Potter maintains a buy rating on Chrysos Corporation (ASX:C79) despite slightly decreasing its price target. The buy rating is maintained as Bell Potter believes that the PhotonAssay technology will command a significant foothold within the large gold assaying market with current lease agreements with some large gold miners providing good near-term deployment visibility.
• And Trading Central has identified a bullish signal in Monash IVF Group (ASX:MVF), indicating that the stock price may rise from the close of $1.40 to the range of $1.46-$1.48 on a pattern formed over 25 days, according to the standard principles of technical analysis.

The local market advanced 0.51% on Tuesday tracking Wall Street’s rally and led locally by the health care sector jumping 1.02%. Heavyweight healthcare stocks including CSL and Cochlear gained 1.4% and 1.7% respectively while sleep apnoea device maker ResMed lifted 1.9% on Tuesday.

As the recent story on the miner front has gone, Karoon Energy joined the lowered production guidance train yesterday as the company lowered its Brazil production guidance for 2024, blaming operational issues at its Bauna project in November for the downgrade. Investors sold out of Karoon shares yesterday sending the share price down 3.8%.

Judo Bank on the other hand soared 16.8% after the company posted a 24% jump in profit before tax for the first half, driven by continued above-system lending growth, and stronger net interest margins, which have peaked for the big four banks.

NAB Business Confidence data for December released on Tuesday also boosted market sentiment as business confidence rose to -1 point for the month, up from -8 points in November and well above economists’ expectations of -7 points in a sign business conditions are improving.

It was a mixed session on Wall St on Tuesday with the Dow Jones retreating from record territory to close the day down 0.25% following the release of some disappointing earnings results, while the Nasdaq and S&P500 ended the day up 0.43% and 0.3% respectively. Investors used Tuesday’s session to pause and take some profits after it was confirmed the S&P500 officially reached bull market territory and the Dow Jones hit a new record high on Monday. United Airlines rose more than 6% on Tuesday after reporting stronger-than-expected fourth-quarter results, however, the airline said it expects a first quarter loss due to the grounding of Boeing 737 Max 9 airplanes across the US.

General Electric shares slipped 1% on Tuesday following the issue of weaker-than-expected guidance, while Johnson & Johnson also dipped over 1% after the healthcare giant said the company’s pharma division sales will be lower in the second half of 2024.

In Europe overnight, markets retreated as euro zone flash consumer confidence data fell to -16.1 points for December from -15 points in January which was against economists’ expectations of an improvement to -14.3 points, in a sign consumer confidence in the European economy continues to slide. The STOXX600 fell 0.25% on Tuesday, while Germany’s DAX and the French CAC each lost 0.34%, and, in the UK, the FTSE100 ended the day mostly flat.

What to watch today:

• Ahead of the local midweek trading session here in Australia the SPI futures are anticipating the ASX to open 0.17% higher tracking gains on the Nasdaq and S&P500 overnight.
• On the commodities front this morning, oil is trading 0.74% lower at US$74.2/barrel, gold is up 0.15% at US$2024/ounce and iron ore is flat at US$132.50/tonne.
• AU$1.00 is buying US$0.66, 97.41 Japanese Yen, 51.96 British Pence and NZ$1.08.

Trading Ideas:

• Bell Potter has maintained a buy rating on Coronado Global Resources (ASX:CRN) but has slightly decreased the 12-month price target on the leading pure-play metallurgical coal producer following the release of the company’s December quarterly sales that met Bell Potter expectations however, revenue fell significantly short of Bell Potter’s expected US$887m. CRN also reported full year CY23 saleable production was 15.8million tonnes at mining costs of US$107.60 which were 3% and 8% misses on guidance respectively.
• And Trading Central has identified a bearish signal on Pengana Private Equity Trust (ASX:PE1) following the formation of a pattern over a period of 15-days which is roughly the same amount of time the share price may fall from the close of $1.42 to the range of $1.30 to $1.32 according to standard principles of technical analysis.

Wall Street opened the new trading week in record territory across two of the three key indices as investors shook off the equity slump that started 2024 lower ahead of key Q4 GDP data out later this week.

The Dow Jones rose 0.36% to trade above 38,000 for the first time during the session, while the S&P500 added 0.22% to reach a new all-time high and the Nasdaq advanced 0.32% on Monday.

The strength in US equities signals a strong bull run that has been in effect since October 2022 and the duration of this rally will depend on whether the US central bank can successfully pull off a soft landing over a recession as inflation continues to cool in the world’s largest economy. Later this week, Q4 GDP data will further indicate how well the Federal Reserve’s rate policy has been at bringing inflation down while maintaining economic stability.

Department store giant Macy’s rallied over 3% on Monday after rejecting a $5.8bn takeover offer while cost-cutting measures through laying off 16% of the workforce sparked a rally for SolarEdge shares.

Over in Europe, markets closed higher in the region to start the new trading week on a positive note as investors await the release of eurozone consumer confidence and monetary policy meeting data out later this week. The STOXX600 rose 0.78% on Monday, Germany’s DAX added 0.77%, the French CAC climbed 0.56%, and, in the UK, the FTSE100 ended the session up 0.35%.

The ASX has started the new trading week on a very positive note with the key index closing 0.75% higher on Monday, taking strong lead from Wall Street’s rally on Friday and driven by a tech surge on the local index. The global tech rally that took over markets in 2023 has extended into the new year as earnings growth on the AI and semiconductor front drives investor appetite for the high growth sector. The tech sector also benefits from interest rate cuts as it makes funding growth outlook more affordable for the high growth sector.

Big miners across a few key commodities were hit hard yesterday for a range of reasons. Lithium market darling of the past few years, Liontown Resources tanked over 20% yesterday after the company announced it is reviewing its expansion plans and associated ramp-up of its 

Rare earths producer Lynas Rare Earths also fell out of favour with investors yesterday after releasing a December quarter update indicating output more than halved during the three months due to a temporary shutdown at its Malaysian facilities to complete an upgrade.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are expecting the ASX to open Tuesday’s session mostly flat.
• On the commodities front this morning oil is trading 2.38% higher at US$75.02/barrel, gold is down 0.3% at US$2023/ounce, and iron ore is up 2.71% at US$132.50/tonne.
• AU$1.00 is buying US$0.66, 97.44 Japanese Yen, 51.89 British pence and NZ$1.08.

Trading Ideas:

• Bell Potter has decreased the 12-month price target on Lynas Rare Earths (ASX:LYC) from $8.50 to $7.60 however, maintain a buy rating on the leading producer of rare earths following, after the company released a first half trading update outlining production on the weaker side, a slide in revenue, and weaker outlook in amid China’s sluggish recovery.
• And Trading Central has identified a bullish signal on Washington H Soul Pattinson (ASX:SOL) following the formation of a pattern over a period of 124-days which is roughly the same amount of time the share price may rise from the close of $33.21 to the range of $37.30 to $38.20 according to standard principles of technical analysis.

Renewed confidence in equities boosted Wall Street to a positive close on Friday, with the key indices shaking off the negative market sentiment that started 2024 in a downturn. The S&P500 rallied 1.23% to a new record high while the Dow Jones added 1.05% and the Nasdaq ended the final trading session of the week up 1.7%. The rally that ended last week in the US overturned the negative start to 2024 taking all three indices into gains for the year so far. Fresh consumer confidence data out on Friday indicated consumers are becoming more confident in both a soft landing and controlled inflation in the world’s largest economy. As earnings season ramps up in the US, we are seeing companies across insurance, financials and other key sectors post better-than-expected earnings which further boosts investor confidence at a time where earnings were expected to begin easing amid slowing economic growth.

Over in Europe, markets closed mostly lower as the World Economic Forum in Switzerland came to an end. The STOXX600 fell 0.3% on Friday while Germany’s DAX closed mostly flat, the French CAC dropped 0.4% and, in the UK, the FTSE100 ended the day up just 0.04%. The key message out of the economic forum was that while inflation is making good progress in declining to the target 2%, markets pricing in cuts from March is likely premature. UK retail sales data for December also indicated slowing retail spend as consumer sales dropped 3.2% in December, the traditionally high spend holiday trading period, as higher interest rates continue hurting UK consumers.

Locally on Friday, the ASX200 rose 1.02% as investors piled into technology stocks with the sector advancing 3.01% while utilities stocks were the only sector to fall out of favour with investors on Friday. EML Payments led the gains on Friday as the payment services company announced it was shutting down its loss-making PFS card services Ireland business, while Lottery Corp and Jumbo Interactive experienced rallies on news of Australia’s Powerball Jack-potting to the second largest amount in history this week of $150m.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are expecting the ASX to open Monday up 0.35% following the strength on Wall Street that ended Friday’s session in gains for 2024.
• On the commodities front this morning oil is trading down 1% at US$73.20/barrel, gold is up 0.34% at US$2029.48/ounce, and iron ore is up 0.4% at US$129/tonne.
• AU$1.00 is buying US$0.66, 97.79 Japanese Yen, 52.14 British Pence, and NZ$1.08 .

Trading Ideas:

• Bell Potter has maintained a sell rating on Fortescue (ASX:FMG), however, has significantly increased the 12-month price target on the major miner following a review into Bell Potter’s iron ore price forecasts. Near-term pricing upgrades are driven by unexpected resilience in the face of tight margins for Chinese steel producers, high levels of steel inventories and weak Chinese property sector outlook. Longer term though, Bell Potter has allowed for increased price support from growing demand from Indian steel production, Chinese government stimulus and recovering demand in the US and Europe.
• And Trading Central has identified bearish signal on Monadelphous Group (ASX:MND) following the formation of a pattern over a period of 51-days which is roughly the same amount of time the share price may fall from the close of $14.26 to the range of $12.90 to $13.20 according to standard principles of technical analysis.