BPO TV

Wall St closed lower overnight as investors await results from the US federal election this week. The Dow Jones fell 0.61%, the S&P500 lost 0.28% and the tech-heavy Nasdaq dropped 0.33%.

Over in Europe, markets closed lower with the STOXX600 closing 0.3% lower. Technology stocks were the biggest losers, lowering 1.1%, whilst banks gained 0.7%. Germany’s DAX lost 0.56%, the French CAC dropped half a percent and over in the UK the FTSE100 closed slightly higher by 0.09%.

Locally yesterday, the ASX200 closed 0.56% higher with the majority of sectors closing in the green by the closing bell. Gains were led by the information technology and utilities sectors which rose by 1.71% and 1.7% respectively. This was offset by the energy sector which fell by 0.71% by the end of the trading day.

What to watch today:

• The Australian share market is set to open lower, with the SPI futures suggesting a fall of 0.4% by market open this morning.
• In terms of economic news, the RBA interest rate decision will be released today with a forecast and consensus for it to stay steady at its previous result of 4.35%. The US presidential results will also be announced after local market close today.
• On the commodity front this morning,
  • Oil is trading 3.12% higher at 71 US dollars and 71 cents a barrel as there are concerns that Iran may strike back at Israel in the coming days. 
  • Gold is trading flat at 2736 US dollars an ounce and iron ore is trading 1.29% lower at 102 US dollars and 49 cents a tonne.

Trading Ideas:

• Bell Potter maintains a buy rating on AV Jennings Limited (ASX:AVJ) and has a current 12-month price target of $0.45. The current share price of $0.30 indicates a share price growth of 50%, hence the buy rating is maintained.
• And Trading Central has identified a bullish signal in Resimac Group (ASX:RMC) , indicating that’s the stock price may rise from the close of $0.89 to the range of $1.01-$1.03, on a pattern formed over 74 days, according to the standard principles of technical analysis.