Between the Bells

Morning Bell 20 September


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All eyes this week are on the US Federal Reserve, who will meet on Wednesday. The Fed are expected to hint when its $120 billion per month bond buying will slow down. This has been critical in supporting the US economy and stock market. 

Ahead of the meeting, investors exercised caution, locking in profits and selling stocks, which dragged the Dow Jones to a two month low. Mining and tech stocks down the most, while energy stocks saw the biggest gains, as the oil price slicked up. Healthcare stocks also finished higher. 

This morning the Aussie share market is set to follow the US, with the futures suggesting a fall of 0.92%. 

What to watch today: 

  • The iron ore price fell on Friday, and has now risen 3.5% to US$123, as it attempts to rebound. Watch BHP (ASX:BHP) and Fortescue Metals (ASX:FMG). 
  • The lithium price rose 2%, while the oil price is now lower, rising 3% on the week to US$71.73, its highest level since July. 
  • The coal price hit another record high, amid restricted supply and skyrocketing demand from China and India for electricity. 
  • Corporate results from the US begin to come through as the end of the quarter approaches. 
  • Sydney Airport (ASX:SYD) reported August 2021 traffic numbers, with total passenger traffic of 51,000 passengers, down 99% on the corresponding period in 2019. 
  • Sigma Healthcare (ASX:SIG) and Kathmandu (ASX:KMD) are due to report tomorrow. 
  • Also this week: AGL Energy (ASX:AGL) set to hold its AGM on Wednesday. On Thursday, Brickworks (ASX:BKW) is set to report, and Suncorp (ASX:SUN) is set to hold its AGM. 
  • In economic news, the RBA meeting minutes will be released on Tuesday. And the services sector reading will be released on Thursday. Given restrictions, the sector is not expected to recover until November. 
  • Companies going ex-dividend today include Duratec (ASX:DUR) and Fenix Resources (ASX:FEX). 

Trading Idea: 

  • Gold Road Resources (ASX:GOR) was reiterated as a Bell Potter BUY, with a $1.75 target, implying 31% share price growth in a year. 
  • Bullish charting signals have been identified in ALS (ASX:ALQ), Lovisa (ASX:LOV) and Imicor (ASX:IMR) according to Trading Central.  
...more
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Between the BellsBy Bell Direct


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