Between the Bells
Between the Bells
Bell Direct
Morning Bell 14 October
4 minutes Posted Oct 13, 2020 at 10:00 pm.
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After five days of straight gains, it looks like some profit taking is in order today. The futures are suggesting a fall of 0.9% today. 

The reason sentiment is likely to be weak today is because global equities pulled back overnight with the UK recording its highest daily rise in COVID-19 deaths.

In the U.S., Johnson & Johnson’s COVID-19 vaccine study was paused due to an unexplained illness in a patient study, seeing J&J shares slide 2.3%.

What to watch today:

  • The oil price gained 2% to US$40.17, while Gold fell about 2% to US$1,894.
  • Afterpay (ASX:APT) received finalisations and clearance from AUSTRAC’s audit.
  • Bank of Queensland (ASX:BOQ) reported its net profit fell 61%. Auckland International Airport (ASX:AIA) and Aurizon Holdings (ASX:AZJ) also report. 
  • AGMs today: CSL (ASX:CSL), Cleanaway Waste Management (ASX:CWY) and Aurizon Holdings (ASX:AZJ).
  • Overnight, the International Monetary Fund (IMF) revised its global economic growth forecasts higher to a 4.4% contraction, up from negative 4.9% growth for 2020. 

 

Trading ideas:

  • Orica (ASX:ORI), a leading explosives manufacturer was reiterated as a Citi Buy with a new increased target of $19.50. Citi is expecting medium-term earnings growth underpinned by higher pricing, increased technology sales and better plant utilisation. 
  • Following Telstra’s (ASX:TLS) AGM yesterday UBS maintained Telstra as a Buy with $3.70 target. 
  • BCI Minerals (ASX:BCI), Silver Lake Resources (ASX:SLR) and Ramelius Resources (ASX:RMS) are all showing bullish charting signals - according to Trading Central.