Morning Bell 9 October

Between the Bells

Wall Street closed higher overnight as lowering oil prices takes the pressure off stocks. The Dow Jones rose by 0.3%, the S&P 500 gained 0.97% and the tech-heavy Nasdaq ended 1.45% higher by the closing bell.

Over in Europe, markets closed lower following eased stimulus talks coming out of China. The STOXX600 fell by 0.54% with all major sectors closing in the red, including mining stocks which dropped 4.47% and household goods which lost 1.47%. Germany’s DAX lowered by 0.2%, the French CAC fell 0.72% and over in the UK the FTSE100 ended Tuesday’s trading session 1.36% lower.

Locally on Tuesday the ASX200 fell 0.35% with BHP and Rio Tinto losing more than 2% each after China’s National Development and Reform Commission press conference was held without further material stimulus measures included.

What to watch today:

• The Australian share market is set to open higher, with the SPI futures suggesting a rise of 0.18% at market open this morning.
• On the commodities front this morning,
  
  • Oil is trading 4.37% lower at 73 US dollars and 76 cents a barrel as supply issues in the Middle East are yet to be impacted and investors have started to focus back towards Chinese demand
• Gold is trading 0.84% lower at 2620 US dollars an ounce and iron ore is trading 3.26% higher at 112 US dollars and 39 cents a tonne.

Trading Ideas:

• Bell potter maintains a buy rating on Seven Group Holdings (ASX:SVW) and has a 12-month price target of $48.50. The buy rating is maintained by Bell Potter as SVW’s businesses and investments are market leaders in their respective industries, with scale, brand, and industry expertise underpinning commercial advantages that are hard to replicate by competitors. Bell Potter remains positive on the near-term outlook for mining production, engineering construction and transitional energy markets, hence the buy rating is maintained.
• And Trading Central has identified a bearish signal in IDP Education (ASX:IEL), indicating that the stock price may rise from the close of $15.04 to the range of $13.50-$13.80, on a pattern formed over 29 days, according to the standard principles of technical analysis.