The Aussie share market is eyeing a gain of 0.1% at the open.
U.S. equities rallied for the second straight day, continuing to claw back from last week’s retreat, which was the worst weekly fall since March.
What to watch today:
Local trading ideas:
Good morning thanks for your company this Wednesday the 4th of November, I’m Jessica Amir market analyst with Bell Direct.
All U.S. equities rallied strongly for the second straight day continuing their clawback from last week’s retreat which was the worst fall since March.
It’s important to remember that this is historically what occurs before an election with capital generally being put to work after a result is known as uncertainty fades but overnight’s rally was more about hope.
Hope that an election result is just around the corner and that the result will hopefully not be contested.
Stocks tied to economic growth again led the rally like Walgreens and Goldman Sachs of about 4% each, the Dow Jones ending 2.1% higher, the S&P500 up 1.8% and the Nasdaq lifted 1.9%, losing a bit of momentum later in the session.
Though on the commodity side of things green and black again across the screen the oil price lifted almost 3% it’s now US$37.84 a barrel and gold lifted about 0.9% to US$1,908 an ounce.
As for local trade the futures are suggesting a bit of hesitation but a nudge forth in the right direction up 0.1% with lots to digest.
And watch today now one important key thing is that investors will be considering that China has allegedly put a temporary ban on Australian coal, copper, oil, waste, wool and lobster as well as sugar imports into China from Friday so traders will be assessing that.
Woolworth’s (ASX:WOW) meantime just handed down quarterly results group sales up 12% to $17.9 billion with food sales up 13% with customers continuing to eat more at home.
Other standouts Big W sales increased over 20% with toy sales as standout, Endeavour Drinks sales up 21% bolstered by Dan Murphy’s liquor and online sales the highlights there.
While hotel trading continued to fall impacted of course by Victoria’s lockdown with sales falling 33% other results to watch today include Pendal (ASX:PDL) their half year results are out and AGMs are being held for Domino’s Pizza (ASX:DMP) and Cedar Woods Properties (ASX:CWP).
As for trading ideas that could be worth a look UBS reiterated the owner of IGA, Metcash (ASX:MTS) as a buy increasing its price target to $3.25 expecting sales momentum to continue.
UBS also thinks Metcash can maintain the customers and market share that they’ve managed to pick up in COVID-19.
And Bell Potter reiterated oncology company Kazia Therapeutics (ASX:KZA) as a speculative buy with a $2 target and that implies about 153% upside in a year.
The next catalyst to watch for KZE, interim data for phase 2 study and another study results due later this month.
And Bell Potter upgraded Auswide Bank (ASX:ABA) their buy rating and target to $5.70 implying 14% upside in a year.
Earnings momentum four Auswide Bank is building as loan book growth strongly rose and that helped net profit after tax surge 36% in the quarter, this is something that not many banks have been able to do, increase their profit.
I’m Jessica Amir, stay safe happy trading.