Between the Bells

US equities closed higher again on Wednesday as Treasury yields continued to decline, and investors await the release of the latest inflation data out on Thursday US time. The Dow Jones industrials index rose 0.19%, the S&P500 added 0.43% and the tech-heavy Nasdaq rose 0.71%. The latest slate of US inflation data will be released on Thursday with economists expecting a rise of 0.3% on the previous month and 3.6% annually. Producer price index in the US rose 0.5% for September which was higher than economists were expecting but a decline from the 0.7% rise reported in August. The latest FOMC meeting minutes also eased investor sentiment on Wall St overnight with signals that just one more interest rate hike may be needed in this monetary tightening cycle to ensure inflation remains under control in a downward trend toward the target 2% reading.

Over in Europe, markets closed mixed on Wednesday, a day after the markets reported the best session in 11-months. The STOXX600 added 0.2% on Wednesday driven by food and beverage stocks while retail stocks fell 2.1%. Germany’s DAX rose 0.24% on Wednesday, while the French CAC fell 0.44% and, in the UK, the FTSE100 lost 0.11%.

Shares in luxury brands retailer LVMH group fell over 6% after reporting a slowdown in growth.

Locally yesterday, the ASX200 rose just shy of 0.7% led by the tech sector jumping 1.7% while consumer discretionary and industrials stocks added 1.23% and 1.12% respectively. All 11 sectors closed the midweek session higher for a second consecutive session.  Talks of a Chinese stimulus package worth at least 1 trillion yuan for spending on infrastructure to further stimulate the economic recovery in the world’s second largest economy. These reports boosted local miners’ yesterday amid the outlook for higher demand of Australian produced commodities, especially iron ore.

Qantas shares rallied almost 2% on Wednesday after chairman Richard Goyder agreed to leave the embattled airline’s board next year, while Telstra shares came under pressure after the telco giant announced plans to buy Versent, a cloud consulting company, for $267.5m in a bid to further its cloud business expansion and digitisation.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are anticipating the ASX to open 0.08% higher on Thursday.
• On the commodities front this morning oil is trading 3.12% lower at US$83.29/barrel, gold is up 0.76% at US$1874/ounce and iron ore is down 1.73% at US$113.50/tonne.
• AU$1.00 is buying US$0.64, 95.56 Japanese Yen, 52.24 British Pence and NZ1.06.

Trading Ideas:

• Bell Potter has increased the 12-month price target on Eagers Automotive (ASX:APE) from $15.25 to $15.50 and maintain a hold rating on the leading Australian automotive retailer following the company announcing it has entered into a non-binding agreement to acquire a portfolio of dealerships and key strategic properties located across Melbourne and the Mornington region of Victoria from a group of companies for a total purchase price of $245m comprising $111m in good will, $100m for the properties and $34m of net assets.
• And Trading Central has identified a bullish signal on Terracom (ASX:TER) following the formation of a pattern over a period of 25-days which is roughly the same amount of time the share price may rise from the close of $0.42 to the range of $0.57-$0.61 according to standard principles of technical analysis.

Over in the US on Tuesday, a sharp decline in Treasury yields boosted equities on Wall Street to extend this week’s rally into Tuesday as investors assess the geopolitical and long-term risks of the war in Israel. The Dow Jones rose 0.4%, the S&P500 added 0.6% and the Nasdaq rose 0.7%. Easing oil prices on Tuesday also boosted investor sentiment after the price of the commodity rose 5% on Monday on concerns of the long-term effect of the war in Israel. Investors in the US are also looking ahead with optimism at the release of third-quarter earnings results out later this week.

In Europe on Tuesday, markets reversed Monday’s losses to close higher across the region despite rising tensions in the Middle East. The STOXX600 rose 2% boosted by travel stocks rising 3.9% despite the global uncertainty around travel as airlines cancel flights to Israel, while mining stocks rose 2.9%. Germany’s DAX added 1.95% on Tuesday, the French CAC rose 2.01%, and, in the UK, the FTSE100 lifted 1.82%.

The rally on the ASX extended into a third session on Tuesday with the ASX200 gaining 1.01% to close above 7000 points again at the closing Bell, driven by the utilities sector jumping 4.17% followed by technology stocks climbing just over 3%. All 11 sectors closed Tuesday’s session in the green. The local rally followed a positive night in the US overnight after some Fed Officials suggested the recent surge in long-term treasury yields may reduce the need for the Fed to raise its benchmark interest rate again. Rate sensitive sectors in Australia were the best performers on Tuesday, including tech and REIT stocks.

Origin Energy did most of the heavy lifting in the Utilities sector on Tuesday, closing the session up 5.5% after Australia’s competition watchdog the ACCC approved Brookfield and EIG Partners’ $18.7bn takeover offer for the leading energy wholesaler.

The local market was also boosted yesterday by Westpac Consumer Confidence data showing a rise of 2.9% for October which well exceeded economists’ expectations of a 0.7% decline and NAB Business Confidence Data also released showed a reading of 1 point which was the third straight month of a steady reading and above the -2 points expected by markets.

What to watch locally:

• Ahead of the local session here in Australia the SPI futures are suggesting the ASX will extend its green run into a 4th straight session, by opening the midweek session up 0.49%.
• On the commodities front this morning, oil is trading 0.6% lower at US$85.84/barrel, gold is down just 0.06% at US$1859/ounce and iron ore is flat at US$119.50/tonne.
• AU$1.00 is buying US$0.64, 95.45 Japanese Yen, 52 British Pence and NZ$1.06.

Trading Ideas:

• Bell Potter has decreased the 12-month price target on Paradigm Biopharmaceuticals (ASX:PAR) from $2.20 to $1.40 and maintain a speculative buy rating on the Australian-based biotech company following the company releasing a report on the 12-month efficacy data from PARA_OA_008 yesterday. The study continued to show patients on the highest dose continued to show significant reductions in pain along with improvements in function 12-months after dosing. Despite the promising outlook and study results, the stock has been sold off as the sector remains out of favour with investors hence the downgrade to the price target reflecting an increased discount rate in the DCF model and earnings adjustments to FY24/FY25.
• And Trading Central has identified a bullish signal on Sandfire Resources (ASX:SFR) 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 $6.25 to the range of $6.75-$6.90 according to standard principles of technical analysis.

For a limited time only, we are giving you exclusive access to 3 Bell Potter stock reports each week, delivered straight to your inbox. And as a bonus, you will go in the draw to win a share of 3 million Velocity Frequent Flyer Points. The insights from these reports are something you can’t find with any other online broker and is what we use to provide you with our daily trading ideas and market analysis. Gain extra entries by joining Bell Direct and placing your first trade. This offer is available to investors new to Bell Direct.

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Wall Street closed higher over night as investors assess rising geopolitical tensions caused by the conflict between Hamas and Israel and the potential ramifications for the energy market. Defence and oil related companies rallied on Monday amid investor fears of a prolonged period of war in Israel.

In Europe overnight, markets closed lower as investors in the region also assessed the impact of geopolitical turmoil in the Middle East. The STOXX600 fell 0.3%, weighed down by travel and leisure stocks falling 2.4%, while oil and gas stocks rose 2.9% on the rising price of oil. Germany’s DAX fell 0.67% on Monday, the French CAC lost 0.55% and, in the UK, the FTSE100 closed just 0.03% lower.

The local market opened the new trading week on a positive note with the ASX200 adding 0.23% at the closing bell on Monday buoyed by the energy sector jumping 3.04% as the price of oil rose 4% on geopolitical tensions escalating in the Middle East. The gold miners also rallied yesterday amid a spike in the price of the precious commodity which led to De Grey Mining jumping 8.07% while Capricorn Metals added 5.35%, and Newcrest Mining lifted 4.74%.

Popular Mexican fast food chain Guzman y Gomez is reportedly eyeing an IPO in Australia at the end of next year with two CEOs at the helm according to founder Steven Marks.

Magellan Financials’ share price took a further hit yesterday, with the funds manager closing the day down over 7% as investors continue piling out, on the back of the company’s September trading update indicating a further $4bn in outflows were realised during the month taking total funds under management to $35bn.

What to watch today: 

• Ahead of the local trading session here in Australia the SPI futures are anticipating the ASX to open Tuesday’s session 0.43% higher at market open this morning.
• On the commodities front this morning, oil is up 3.91% at 86 US dollars and 4 cents a barrel, gold is up 1.22% at 1854 US dollars an ounce and iron ore is flat at 119 US dollars and 50 cents a tonne.
• Oil price jumped 4% after Hamas invaded Israel over the weekend – at this point there appears to be no direct impact on oil supply and demand however a prolonged war will definitely have some form of impact.
• AU$1.00 is buying US$0.64, 95.05 Japanese Yen, 52.12 British Pence and NZ$1.06.

Trading Ideas:

• Bell Potter maintains a buy rating on Aeris Resources (ASX:AIS) and has increased its price target to 30 cents with a current share price of 18.5 cents. It’s near term outlook remains highly leveraged to increasing copper grades at the Tritton copper mine, where high grade ore sources have commenced production and exploration success is likely to sustain it.
• And Bell Potter maintains a buy rating on Smartpay Holdings (ASX:SMP) despite lowering their price target by 4 cents, with a current share price of $1.53. Their upcoming results should provide for further operating delta with a focus on unit growth and cost maintenance.

Wall Street rallied on Friday despite jobs data soaring past expectations to provide further support of a soft landing in the U.S. as opposed to a recession. The Dow Jones rose 0.87% on Friday while the S&P500 added 1.18%, and the Nasdaq rose 1.6%. The US economy added 366,000 jobs in September, more than double economists’ expectations of 170,000 jobs being added. Wages rose less than expected in September though which is a positive sign for inflation. Yields initially rose after the release of the jobs report however retreated in afternoon trade with the 10-year treasury yield settling at 4.78% on Friday. The US unemployment rate remained unchanged at 3.8% which was slightly higher than economists had forecast.

Over in Europe, markets rallied on Friday following the release of robust jobs data in the U.S. The STOXX600 rose 0.8%, Germany’s DAX rose 1.06%, the French CAC added 0.88% and, in the UK, the FTSE100 rose 0.58%. Shares in electronic giant Philips fell 7% on Friday after the US FDA criticised the Dutch health tech company’s handling of a major product recall, with the FDA claiming they do not believe ‘testing and analysis Philips has shares to date are adequate to fully evaluate the risks posed to users from the recalled devices’.

Locally on Friday, the ASX200 rose 0.41% to shake off some of the week’s heavy losses driven by a strong rally for financial and materials stocks while energy stocks came under pressure amid the falling price of oil.

Magellan Financial tanked 18.5% after the asset manager reported a further $4bn drop in funds under management for September to $35bn.

What to watch today: 

• Ahead of the local trading session here in Australia the SPI futures are expecting the ASX to open 0.83% higher on the back of Wall Street’s rally on Friday.
• On the commodities front this morning, oil has recovered to trade 0.58% higher at US$82.79/barrel, gold is up 0.68% at US$1832/ounce and iron ore is flat at US$119.50/tonne.
• AU$1.00 is buying US$0.64, 94.87 Japanese Yen, 52 British Pence and NZ$1.07.

Trading Ideas:

• Bell Potter has increased the price target on Polynovo (ASX:PNV) from $2 to $2.05 and maintain a buy rating on the medical device company following the release of a trading update outlining total revenue for July/August of $14.9m with US sales accounting for $10.6m while key new jurisdictions for growth in FY24 include Asia, Canada and Europe. The Biomedical Advanced Research and Development Authority will also provide an additional US$10m in funding for the pivotal trial program of Polynovo’s NovoSorb.
• And Trading Central has identified a bullish signal on Rio Tinto (ASX:RIO) following the formation of a pattern over a period of 30-days which is roughly the same amount of time the share price may rise from the close of $113.19 to the range of $125-$128 according to standard principles of technical analysis.

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This offer is available to investors new to Bell Direct here.

See offer terms & conditions here. 

We have an exciting announcement. For a limited time only, we are giving you exclusive access to 3 Bell Potter stock reports each week, delivered straight to your inbox. And as a bonus, you will go in the draw to win a share of 3 million Velocity Frequent Flyer Points. The insights from these reports are something you can’t find with any other online broker and is what we use to provide you with our daily trading ideas and market analysis. Gain extra entries by joining Bell Direct and placing your first trade.

This offer is available to investors new to Bell Direct here.

See offer terms & conditions here.

With the prospect of a US government shutdown earlier in the week causing a sell-off on Wall St, and subsequently, global markets, the last-minute stopgap bill passing by Congress slightly eased investor sentiment. The merry-go-round in the US keeps turning.

Also, this week, the RBA held the nation’s cash rate at 4.1% for a fourth straight month.
In this week's wrap, Grady covers:

• (0:09) fears surrounding US government shutdown,
• (1:03) the argument in congress,
• (2:04) the consensus of ‘higher for longer’,
• (3:23) the risk of inflation remaining sticky globally,
• (4:33) the best performing stocks in the ASX200,
• (5:20) the most traded stocks & ETFs by Bell Direct clients, and
• (5:53) five economic news items to watch out for.

Read article transcript here.

Wall St closed lower on Thursday as investors start counting down to the release of key jobs data on Friday. The S&P 500 and the tech-heavy Nasdaq ended the day just over 0.1% lower each whilst the Dow Jones closed flat, only down 0.03%.

Thursday losses were led by the consumer staples sector with beverage company Molson Coors retreating 6.3%, followed by Mondelez International and Clorox declining more than 5% each.

Over in Europe, markets closed higher following a retreat in US treasury yields. The STOXX600 ended its three-day losing streak, finishing 0.3% higher lead by travel stocks which rallied 1.5%. The UK’s FTSE100 closed just over half a percent higher on Thursday, while Germany’s DAX fell 0.20% and the French CAC ended the trading session flat.

Locally yesterday, the Australian market closed 0.51% in the green following strong rallies from the real estate and information technology sectors which finished 2.10% and 1.73% higher respectively. This was slightly offset by the energy sector, which fell 0.89% yesterday.

 What to watch today: 

• The Australian share market is set to open slightly higher, with the SPI futures suggesting a rise of 0.03% at the open this morning.
• On the commodity front this morning,
  • Oil is trading 2.08% lower at 82 US dollars and 46 cents a barrel with the four-week average for gasoline demand reaching its lowest point for this time of year since 1998.
  • Gold is down slightly by 0.05% to 1820 US dollars an ounce as the US dollar and treasury yields pulled back on weaker-than-expected US job data. 
  • And iron ore is trading flat at 119 US dollars and 50 cents a tonne following a hampered outlook construction materials in China.

Trading Ideas: 

• Bell Potter maintains a speculative buy rating on Strike Energy (ASX:STX) and has an unchanged valuation of $0.58 per share with its current price at $0.44 per share. This speculative buy rating is maintained as Strike Energy owns the largest reserves plus contingent resources position in Perth basin and recent market consolidation has highlighted the tightening supply-demand fundamentals in the WA domestic gas market.
• And Trading Central has identified a bullish signal in Helia Group (ASX:HLI), indicating that the stock price may rise from the close of $3.58 to the range of $4.02 to $4.12, on a pattern formed over 18 days according to the standard principles of technical analysis.

Less than a month to go! For a limited time only, we are giving you exclusive access to 3 Bell Potter stock reports each week, delivered straight to your inbox. And as a bonus, you will go in the draw to win a share of 3 million Velocity Frequent Flyer Points. The insights from these reports are something you can’t find with any other online broker and is what we use to provide you with our daily trading ideas and market analysis. Gain extra entries by joining Bell Direct and placing your first trade. This offer is available to investors new to Bell Direct here.

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Favourable jobs data and easing treasury yields boosted Wall St to a positive close on Wednesday with the Dow Jones snapping a losing streak by adding 127 points or 0.4%, while the S&P500 rose 0.8% and the tech-heavy Nasdaq lifted 1.3%. US private payrolls data showed the economy added 89,000 private payrolls last month which was well below the forecasted 160,000 in a sign the tight labour market in the US is starting to ease.

Over in Europe, markets closed lower on Wednesday amid dampened global sentiment over rising interest rates and the outlook for inflation to remain stubbornly high. 

Locally on Wednesday, the ASX200 extended its red run, closing the session down 0.77% to an 11-month low as financial and communication services stocks weighed on the key index, while the utilities sector was the only sector to close the midweek session higher. 

Lithium takeover target Liontown Resources added 1% on Wednesday after Gina Rinehart further increased her stake in the near-term lithium producer, taking her holding to 14.7%

Biotech company Noxopharm soared 85% on Wednesday after announcing its CRO-67 preclinical drug candidate for the treatment of pancreatic cancer has been granted orphan drug designation status by the FDA in the US.

What to watch today: 

• Ahead of the local trading session here in Australia, the SPI futures are anticipating the ASX to open Thursday’s session 0.45% higher on the back of Wall Street’s recovery overnight.
• On the commodities front this morning oil is down 4.96% at US$84.80/barrel, gold is down just 0.09% at US$1821.10/ounce and iron ore is flat at US$119.50/tonne.

Trading Ideas: 

• Bell Potter has initiated coverage of Clinuvel Pharmaceuticals (ASX:CUV) with a buy rating with a 12-month price target of $24/share. Bell Potter sees the company’s distribution of Scenesse, the only approved treatment for patients suffering from a rare inherited disease called EPP, as a strong growth outlet over the coming years, with a 3-year Compound Annual Growth Rate of 34% to $78m in FY23. The company also has diversification beyond Scenesse through conducting a range of pharmaceutical R&D activities and new product launches to diversify its commercial opportunities.
• And Bell Potter has increased the price target on Adacel Technologies (ASX:ADA) from 75cps to 80cps and maintain a buy rating on the leading global provider of simulation and control systems for civil aviation and defence sectors following the company announcing it has been awarded a new contract from the Federal Aviation Administration valued at US$59m over five years. Adacel lost this services contract to a competitor 6-years ago and the new contract award represents the hardware component only and does not include any software so another contract may be forthcoming for the upgrade of the software.

As a reminder, for a limited time only, we are giving you exclusive access to 3 Bell Potter stock reports each week, delivered straight to your inbox. And as a bonus, you will go in the draw to win a share of 3 million Velocity Frequent Flyer Points. The insights from these reports are something you can’t find with any other online broker and is what we use to provide you with our daily trading ideas and market analysis. Gain extra entries by joining Bell Direct and placing your first trade. This offer is available to investors new to Bell Direct here.

In New York on Tuesday, rising treasury yields and unfavourable economic data continued to pressure equities with the Dow Jones closing the session down 1.29% in its worst session since March, while the S&P500 and Nasdaq fell 1.37% and 1.87% respectively. Tuesday’s 1.3% fall for the Dow Jones tipped the key index into the red for 2023, with the index down 0.4% year to date at the closing bell. The 10-year Treasury yield hit 4.787% on Tuesday, reaching its highest level since 2007 as traders assess the possibility of further monetary tightening by the Federal Reserve. Yields spiked and equities fell on Tuesday following the release of the August job openings survey which signalled 9.6 million open roles in the month, which was higher than economists were expecting and indicates the labour market in the US remains tight.

In Europe, markets closed lower on Tuesday as investors digested unfavourable economic data out in the region indicating inflation remains stubbornly high. Italian new car registrations data for September came in at a rise of 22.8% from a rise of 12% in August in a sign consumers are still spending in the region despite rising interest rates. The STOXX600 fell 1.1% on Tuesday while Germany’s DAX lost 1.06%, the French CAC fell 1.01% and, in the UK, the FTSE100 shed 0.54%.

The local market fell again on Tuesday as global markets continue taking lead from the US whereby sentiment is currently dampened by the prospect of a potential government shutdown. The ASX200 closed Tuesday’s session down 1.28% to a near 6-month low with every sector ending the session lower aside from healthcare. Energy stocks took the biggest hit yesterday as the sector closed down 3.7% on the sliding price of oil. Rising bond yields especially in the US also continue to sway investors away from the higher risk equities market in favour of less risky returns through bonds.

The RBA held the nation’s cash rate at 4.1% for a fourth straight month in the October meeting yesterday and the first with Michele Bullock as Governor of the RBA. As with the last few months of holds though, the commentary surrounding the rate pause decision focused on the possible need for further tightening in the future should inflation continue to show signs of remaining high. Australia’s wage price index, consumer price index, housing and rent, energy and producer price index all continue to respectively rise which are the key factors of inflation in Australia while unemployment also remains at 3.7%.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are anticipating the ASX to open the midweek session down 0.5%.
• On the commodities front this morning, oil is trading 0.75% higher at US$89.50/barrel, gold is down 0.14% at US$1824/ounce and iron ore is flat at US$119.50/tonne.
• AU$1.00 is buying US$0.63, 93.88 Japanese Yen, 52.42 British Pence and NZ$1.07.

Trading Ideas:

• Bell Potter has decreased the 12-month price target on Avita Medical (ASX:AVH) from $7.45 to $6.85 and maintain a speculative buy rating on the medical tech company after the FDA issued a ‘Substantive Information Request’ in relation to the pre-market approval supplement application for Avita’s RECELL GO product. The most substantive request relates to additional statistical analysis for cell phenotyping with RECELL GO i.e. how many and what type of cells are available using in a sample prepared with RECELL GO vs the legacy Recell Kit.
• And Trading Central has identified a bullish signal on Beacon Lighting (ASX:BLX) following the formation of a pattern over a period of 78-days which is roughly the same amount of time the share price may rise from the close of $1.90 to the range of $2.40 to $2.55 according to standard principles of technical analysis.

Before we dive into the Morning Bell, we have an exciting announcement. For a limited time only, we are giving you exclusive access to 3 Bell Potter stock reports each week, delivered straight to your inbox. And as a bonus, you will go in the draw to win a share of 3 million Velocity Frequent Flyer Points. The insights from these reports are something you can’t find with any other online broker and is what we use to provide you with our daily trading ideas and market analysis. Gain extra entries by joining Bell Direct and placing your first trade. This offer is available to investors new to Bell Direct here.

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Now into the Morning Bell, Wall St closed mixed as US Congress fractures the thought of a government shutdown. The US government has been dominating news headlines recently after a group of Republicans refused to support funding legislation until government agencies impose stricter border provisions, which has seen the US now facing a government shut down. The tech heavy Nasdaq closed Monday’s session 0.67% higher whilst the S&P 500 traded flat and the Dow Jones closed marginally lower. In terms of US stocks, Discover shares finished Monday up nearly 5% with Nvidia and medical device manufacturer Insulet gaining over 3% yesterday.

Over in Europe, markets closed lower on Monday following the STOXX600 ending it’s worst performing quarter of the year. The UK’s FTSE100 retreated 1.28% with the German DAX and French CAC following suit both closing just over 0.90% lower each.

Locally yesterday, markets closed 0.22% lower with the consumer staples and health sectors leading losses. This was however, offset by a 0.64% rise in the utilities sector.

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 1.36% at the open this morning.
• In terms of economic data, the RBA will release their interest rate decision today, with economists expecting a hold at 4.1%, the same as September.
• On the commodity front this morning, 
  • Oil is down 2.5% to 88 US dollars and 51 cents a barrel following concerns about high borrowing costs that were highlighted by optimistic PMI results. 
  • Gold is down 1.11% to 1827 US dollars an ounce, after higher rates in the US reduces the appeal of the precious metal. 
  • And iron ore is flat at 119 US dollars and 50 cents following muted construction outlook in China.

Trading Ideas:

• Bell Potter maintains a speculative buy rating on Cyclopharm (ASX:CYC) and his increased its price target from $3.25 to $4.25 with a current share price of $2.83. The speculative buy rating is based off the expectation that there will be strong revenue growth off a modest base over the next three years.
• And Trading Central has identified a bearish signal on Transurban Group (ASX:TCL), indicating that the stock price may fall from the close of $12.67 to the range of $11.70-$11.90 on a pattern formed over 6 days, according to the standard principles of technical analysis.

Fears of a government shutdown prompted Wall St to close mostly lower on Friday to end the worst month of 2023 on the NYSE. The Dow Jones fell 0.5%, the S&P500 lost 0.27% and the tech-heavy Nasdaq rose 0.14%. In early trade on Friday’s session, all three key indices were trading higher as investors welcome the latest personal consumption expenditures price index reading of a 0.1% rise in August and up 3.9% annually. Economists were polling a 0.2% rise for August in the data the federal reserve monitors closely as a key reading of inflation. The sell off in afternoon trade was spurred on by investor concerns of a potential government shutdown following the House GOP leaders failing to pass a short-term spending bill on Friday.

Over the month of September, the Dow Jones fell 3.5%, the S&P500 shed 4.9%, and the Nasdaq dropped 5.8%.

Over in Europe, markets closed higher on Friday driven by a rally for technology stocks in the region. The STOXX600 added 0.5% on Friday, Germany’s DAX rose 0.41%, the French CAC added 0.26%, and in the UK, the FTSE100 gained 0.08%. Eurozone inflation data was the driver of the rally in Europe on Friday with the latest reading coming in at 4.3% for September, its lowest level since October 2021.

Despite the positive session on Friday, the markets in Europe reported their worst quarter of 2023.

Locally on Friday the ASX200 rose 0.34% driven by the materials sector adding 1.22% while consumer discretionary stocks rose almost half a percent. Core Lithium was the winning stock of the session, soaring over 19% after the lithium miner released its first full-year profit as a lithium producer with revenue of $50.6m and profit of $10.8m for FY23.

Liontown Resources on the other hand fell 1.3% on Friday after the miner lifted the estimated capital costs on its Kathleen Valley Lithium project to $951m which is a jump from the $895m estimate announced in January.

What to watch today:

• Ahead of the local trading session here in Australia the SPI futures are expecting the ASX to open the Monday’s session down 0.54% to start the new trading month lower.
• AU$1.00 is buying US$0.64 cents, 96.19 Japanese Yen, 52.46 British Pence and NZ$1.07.
• On the commodities front this morning oil is down 1% at US$90.79/barrel, gold is down 0.88% at US$1848.19/ounce and iron ore is flat at US$119.50/tonne.

Trading Ideas:

• Bell Potter has slightly decreased the 12-month price target on Nufarm (ASX:NUF) from $7.00 to $6.75 and maintain a buy rating on the leading supplier of agricultural chemicals, seeds and treatments globally, following the release of a brief FY23 guidance update. The company has reduced its FY23 EBITDA guidance to $430m-$440m which is below consensus expectations of $451m amid inventory destocking and North America’s late season creating headwinds in H2FY23. A reversal of these trends in FY24 along with growth beyond yield program are likely to see a reasonable rebound in earnings in FY25-FY26.
• And Trading Central has identified a bullish signal on Incitec Pivot (ASX:IPL) following the formation of a pattern over a period of 10-days which is roughly the same amount of time the share price may rise from the close of $3.14 to the range of $3.35 to $3.39 according to standard principles of technical analysis.