The Aussie share market is eyeing a 0.1% lift at the open, bracing for the Government’s mid-year Economic and Fiscal update with estimates suggesting debt swelled to 9% of GDP. Investors are also weighing up a positive finish on Wall Street, while Europe closed lower with oil stocks leading the decline. 

In the U.S., the Government agreed to pay Pfizer and BioNTech $1.95 billion to produce 100 million COVID-19 vaccines if their candidate is safe and effective. Washington is considering extending the COVID-19 unemployment benefit from September to December, and dropping it to $400 a week.

On the commodities front, Oil fell slightly to US$41.90, maintaining its March high. The Gold price gained 1.3% to US$1,865, its highest level since September 2011 and Silver hit a near 7-year high.

What to watch today:

• The Aussie dollar holds its 15-month high with the USD.
• Quarterly results are due out today for Evolution Mining (ASX:EVN), Galaxy Resources (ASX:GXY), Newcrest Mining (ASX:NCM), Northern Star Resources (ASX:NST), Santos (ASX:STO), Syrah Resources (ASX:SYR) and Megaport (ASX:MP1).
• Face masks are compulsory in Victoria as of midnight last night.

Local trading ideas:

• After Lynas (ASX:LYC) handed down its quarterly report, UBS reiterated Lynas as a buy, increasing its target to $2.70. Yesterday LYC closed 2.4% lower at $2.08, but they are still tracking 92% up from their COVID-19 bottom. UBS cut EPS estimates for FY21 due to weaker demand in the automotive industry.
• OZ Minerals (ASX:OZL) handed down its quarterly results yesterday and UBS reiterated OZ Minerals as a buy, increasing its price target to $15.00. Yesterday OZL shares gained 4.2% to $4.24 and have gained 28% so far this year. UBS thinks there is more upside following yesterday’s better than expected results.