Australian Market Preview 30 September

 

US markets edged lower as investors braced themselves for the impending first Presidential Debate.

The tech-heavy NASDAQ closed down 0.29%, while the benchmark S&P500 and the blue chip-laden Dow Jones Industrial Index each fell 0.48%. Earlier, European stocks closed out their respective sessions with similar losses as the German Dax fell 0.35% and the French CAC lost 0.23%. In the UK, the FTSE100 fell 0.51%.

Metals prices on the LME were mixed. Copper, Steel and Tin were approximately 0.50% higher, whilst Aluminium, Lead, Nickel, and Zinc each moved about the same to the downside. Copper also saw a 0.03% gain in New York.

Iron Ore prices are 2.66% higher in early trading in the benchmark January '21 contract on the Chinese Dalian Exchange. The price of iron ore is 0.49% lower to US$123/t in the Singapore-based $US price.

Looking at precious metals, Spot Gold had a stronger session. It rose 1.02% to US$1898.23/oz, whilst Silver gained 2.81% to US$24.25/oz.

Energy commodities were the laggards of the trading session. West Texas Crude dipped 3.89% to US$39.08/barrel, Brent lost 3.90% to US$41.37/barrel, whilst and Natural Gas was 10.59% lower.

In currency moves, the Australian Dollar improved 0.88% to 0.7140 as the US Dollar Index declined 0.41%.

Risk-off bonds were higher, with the yield on the US 10 year Treasury Note falling 0.7bp to 0.654%.

So, with a clear, albeit modest, 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 5879 compared to an overnight session high of 5921 and a low of 5870.

That's a 73.1 point premium discount to yesterday's ASX 200 close of 5952.1, and predictive of approximately a 1.3% fall at the open for the S&P ASX200. 

 

Ambertech Limited (AMO) $0.003 fully franked
Cedar Woods Properties Limited (CWP) $0.065 fully franked
Eildon Capital Ltd (EDC) $0.01925 unfranked
Global Value Fund Ltd (GVF) $0.029 fully franked
MCP Income Opportunities Trust (MOT) $0.0092 unfranked
MCP Master Income Trust (MXT) $0.0072 unfranked
Partners Group Global Income Fund (PGG) $0.007083 unfranked
Perpetual Equity Investment Company Ltd (PIC) $0.028 fully franked
 

Adbri	ABC	Citi retains neutral rating on Adbri (ABC). Retains $2.70 price target. Sees upside from likely increased infrastructure spend post Federal Budget.
Bank Of Queensland	BOQ	Jefferies lowers Bank Of Queensland (BOQ) price target from $4.18 to $4.14.
Bank Of Queensland	BOQ	Goldman Sachs lowers Bank Of Queensland (BOQ) price target from $7.10 to $6.85. Retains buy rating. Reacts negatively to co's increased provisioning for bad and doubtful debts. But notes capital position remains strong.
R3D Global	RA	UBS upgrades R3D Global (RA) rating from sell to neutral.
The A2 Milk Company	A2M	Citi lowers The A2 Milk Company (A2M) price target from $17.20 to $14.20. Retains sell rating. Reacts negatively to news from co. warning that Vic lockdowns have adversely impacted daigou channel sales.
The A2 Milk Company	A2M	Goldman Sachs lowers The A2 Milk Company (A2M) price target from $20.40 to $19.34. Retains buy rating. Reacts negatively to news from co. warning that Vic lockdowns have adversely impacted daigou channel sales.

 

Today, we'll see data on the Chinese manufacturing and services sectors with the release of their respective PMIs, and later this evening, we'll see data on US unemployment, GDP, and pending home sales.

Also, watch out for the first US Presidential Debate due to start around 11am Sydney time.