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According to US Federal Reserve Chair, Jerome Powell, inflation “will likely remain elevated in coming months” before “moderating.”

Apple shares jumped 2.4% after reports that the company had ramped up production of its next-generation iPhones by 20%.

This morning, the futures are suggesting the Aussie share market will dip slightly, about 0.14% or 10 points.

What to watch today:

• Locally, on the COVID-19 front, NSW lockdowns were extended an additional two weeks until Friday the 30th of July. Western Australia impose an immediate border change with Victoria. This requires anyone arriving into WA from Victoria having to self-quarantine for 14 days and be tested on arrival. This comes as Victoria recorded a spike in local COVID-19 cases yesterday. With this in mind, continue to watch travel stocks, such as Flight Centre (ASX:FLT), Qantas (ASX:QAN), Sydney Airport (ASX:SYD) and Webjet (ASX:WEB), which will continue to come under pressure.
• There are two new threats in the local Buy Now Pay Later market. Firstly, Apple has been working on a new service, dubbed internally as Apple Pay Later, that will allow its users to pay for any Apple Pay purchase in instalments over time. Secondly, PayPal have scrapped its late payment fees altogether, a fee that Afterpay managed to profit $70 million dollars’ worth in 2020. The news weighed down on the local tech sector, which fell 2.7%. Zip (ASX:Z1P) and Afterpay (ASX:APT) were hit the most, both down about 10%. Apple’s entry now casts doubt over Afterpay’s US push, which is believed to be one of its main growth initiatives. So continue to keep an eye on local BNPL stocks today.
• In economic news, consumer confidence data was released yesterday, and the index gained 1.5%, holding up despite the sharp fall in NSW. This comes as both Victoria and WA recorded strong bounce backs from COVID-19 related disruptions in June.
• Today, investors will get an update on the unemployment rate. Currently 5.1%, with expectations that this will fall to 5%.
• The oil price traded lower after reports that Saudi Arabia and the United Arab Emirates had reached a compromise that should unlock an OPEC deal to boost global oil supplies.
• The gold price rose about 1%.
• The iron ore price fell about 0.15% from its record high level yesterday.

Trading ideas:

• Bell Potter has upgraded its recommendation on Nufarm (ASX:NUF) from a HOLD to a BUY with a price target of $5.30. The stock closed up 0.67% to $4.51, which implies about 17% share price growth.
• Syrah Resources (ASX:SYR), Ecograf (ASX:EGR) and Orocobre (ASX:ORE) are all giving off bullish charting signals according to Trading Central.