Morning Bell 9 January

Wall St closed mixed overnight as investors assess future potential rate cuts from the Federal Reserve following continuous inflationary pressures. The Dow Jones gained a quarter of a percent, the S&P500 jumped 0.16% and the tech-heavy Nasdaq fell by 0.06%.

Over in Europe, markets closed lower after regional economic sentiment fell in December, according to data. The STOXX600 closed Wednesday’s trading session 0.27% lower with most major sectors closing in the red. Germany’s DAX lowered by 0.05%, the French CAC lost nearly half a percent and over in the UK, the FTSE100 had a slight rise of 0.07%.

Locally yesterday, CPI data was the key driver of investor sentiment which led to a 0.77% rise for the key index at the closing bell of the midweek session. Australia’s monthly CPI data showed a rise of headline inflation to 2.3% in the 12-months to November, which is up from a the 2.1% reported in the year to October but indicates headline inflation remains in the RBA’s target 2-3% range. Yesterday’s gains were led by the materials and financial sectors which rose by 1.61% and 1.27% respectively. This was offset by the information technology sector which fell by 0.82% at the close of trade. 

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.37% at market open this morning.
• On the commodities front this morning,
   
  • Oil is trading 1.21% lower at 73 US dollars and 35 cents a barrel, gold is trading half a percent higher at 2663 US dollars an ounce and iron ore is trading 1.61% lower at 97 US dollars and 84 cents a tonne.

Trading Ideas:

• Bell Potter initiated coverage on Austin Engineering (ASX:ANG) with a buy rating and a 12-month price target of $0.86. With a current share price of $0.52, that indicates a share price growth of 65.4% over the next 12-months, hence the buy rating is maintained.
• And Trading Central has identified a bearish signal in AVITA Medical (ASX:AVH), indicating that the share price may fall from the close of $3.51 to the range of $2.65-$2.85, on a pattern formed over 32 days, according to the standard principles of technical analysis.