Market wraps 25th August 2020

Morning Bell - Jessica Amir - Jessica Amir

The futures are looking at a gain of 0.6% for Aussie equities - a nice addition to yesterdays 0.3% lift, as well as the 35% rise from the COVID-19 low. Overnight in the U.S., the S&P and the Nasdaq reached brand new record closing highs, following the FDA’s approval of the use of plasma as a treatment for COVID-19 patients. Furthermore, positivity was instilled by Trump’s work to fast-track the AstraZeneca/Oxford University COVID-19 vaccine. This positive sentiment helped the S&P500 gain 1%, rising above 3,400 for the first time.

Over to commodities, gold fell to US$1,937 as global equities surge from the potential COVID-19 vaccines. Oil similarly fell 0.5% due to an impending tropical storm threatening the Gulf Coast.

Companies reporting today

  • Ansell (ASX:ANN), which has been front and centre with PPE distribution. Blackmores (ASX:BKL) the vitamin maker, City Chic Collective (ASX:CCX) the online and U.S. women’s clothing company, and Nanosonics (ASX:NAN) – the infection prevention company.
  • Additionally, oil companies; Oil Search (ASX:OSH) and Ampol (ASX:ALD) are on today, while port and logistics company QUBE Holdings (ASX:QUB), and Propel Funeral Partners (ASX:PFP) are set to report too.

Trading ideas:

  • Virgin Money (ASX:VUK) is showing a bullish ‘hammer signal’ using standard technical analysis from Trading Central.
  • CBA (ASX:CBA) may fall from yesterday's close of $68.95 to the range of $60.75 - $62.25 over the next 34 days according to standard technical analysis from Trading Central. This is why Bell Potter has downgraded CBA from a buy to a hold with a $78.00 price target. UBS targets $74.70.
  • Afterpay’s (ASX:APT) buy rating was upgraded by Bell Potter yesterday following the announcement that it will buy Spanish based European buy now pay later company Pagantis.