Australian Market Preview 27 October

 

US markets stumbled again as investors fretted about the impact rising COVID-19 case counts in both Europe and the US would have on the global economic recovery.

The tech-heavy NASDAQ showed the narrowest loss of the major US indices, it closed down 1.64%, while the benchmark S&P500 fell 1.86%, and the blue chip-laden Dow Jones Industrial Index lost 2.29%.

Earlier, European stocks were also lower as the German DAX dipped 3.71% and the French CAC fell 1.90%.  In the UK, the FTSE100 lost 1.16%.

Metals prices on the LME generally weaker. Aluminium (-1.12%), Copper (-2.06%), and Zinc (-0.27%) were the worst, the rest saw small ups or downs. Copper also saw a 1.60% loss in New York.

Iron Ore prices are 0.13% higher in early trading in the benchmark February 21 contract on the Chinese Dalian Exchange. They are 0.44% lower at US$112.58/t in the Singapore-based $US price.

Precious metals were mixed. Spot Gold rose 0.06% to US$1902/oz, whilst Silver lost 1.36% to US$24.26/oz.

Oil-based energy commodities were sharply lower as a number of countries lurched back towards lockdowns. West Texas Crude dropped 3.35% to US$38.63/barrel, Brent lost 3.24% to US$40.46/barrel, whilst Natural Gas was 9.49% higher.

In currency moves, the Australian Dollar retreated 0.21% to 0.7119 as the US Dollar Index advanced 0.35%.

Risk-off bonds were sharply higher, with the yields on the US 10 year Treasury Notes falling 3.8bp to 0.804%.

So, with a clear risk-off move in overseas markets last night, where did the ASX200 Share Price Index end up? Well, it had a lacklustre session, closing at 6095 compared to an overnight session high of 6149 and a low of 6068.

That's a 60.6 point discount to yesterday's ASX 200 close of 6155.6, and predictive of approximately a 0.8% fall at the open for the S&P ASX200. 

 

Today
Clover Corporation (CLV) $0.025, 100% franked

Thursday, 29 October
Qualitas Real Estate Income (QRI) $0.008, 0% franked
Perpetual Credit Income T (PCI) $0.003, 0% franked
Gryphon Capital Income T (GCI) $0.007, 0% franked
Rectifier Technologies (RFT) $0.001, 100% franked
 

Coca-Cola Amatil	CCL	Citi downgrades Coca-Cola Amatil (CCL) rating from buy to neutral.  Cites $12.75 takeover bid from European counterpart.
Coca-Cola Amatil	CCL	Morgan Stanley raises Coca-Cola Amatil (CCL) price target from $9.25 to $12.75.  Reviews $12.75 takeover bid from European counterpart.
Coca-Cola Amatil	CCL	Jefferies raises Coca-Cola Amatil (CCL) price target from $10.00 to $12.75.  Reacts positively to $12.75 takeover bid from European counterpart.
Nick Scali	NCK	Citi raises Nick Scali (NCK) price target from $9.80 to $10.10. Retains buy rating. Upgrades expected earnings by 3% in FY21 and by 8% in FY22 on the back of trading update. Co. is performing strongly and expects this to continue despite COVID-19.

 

There weren't any major economic data releases in the past 24 hours.

Today, RBA Deputy Governor Guy Dobelle will be appearing before the Senate Economics Legislation Committee.

Tonight, we'll see data on purchases of large and long-lasting items in the US with the release of their Durable Goods Orders.