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The Aussie share market looks set to drop 0.6% at the open, as the rocky recovery continues.

Yesterday we saw the Aussie share market end flat, failing to follow Wall Street’s record rally. But now it is like the boy who cried wolf, traders might be wishing they followed those gains yesterday, as overnight U.S. equities headed South.

Atlanta Federal Reserve said the U.S. economy recovery will be “bumpier” as COVID-19 cases continue to rise, with 2.93 million cases in the U.S..

What to watch today:

• Given the commodity rally, I’d be watching hard commodity miners and producers. On the iron ore front Fortescue (ASX:FMG) and BHP (ASX:BHP), have been reiterated as UBS buys. Citi also likes BHP and Goldman Sachs backs BHP as well, but sees the most upside in Rio Tinto (ASX:RIO).

Local Trading ideas:

• UBS reiterated its buy rating on Imdex (ASX:IMD) with a price target of $1.30, after the cloud-drilling and extraction company snapped up AusSpec for $8.5 million.
• Afterpay (ASX:APT) was given another big upgrade by Bell Potter, beefing up its buy rating and price target to $81.25. It comes as Afterpay announced it’s significantly de-risking the business, raising $800 million. They also have more than doubled its gross merchant value to $11.1 billion and customer numbers to 9.9 million, where the runway for further growth appears bright. Bell Potter upgraded revenue estimates by 3.8%, 5.6%, and 6.3% for FY20, FY21 and FY22 respectively. Bell Potter’s price target is $81.25 per share, while UBS overnight maintained its sell rating in the stock increasing its price target to $27.
• UBS maintained its hold rating on Magellan (ASX:MFG) with a $62.32 price target, after the fund manager shares have gained about 11% so far this year. UBS also noted Magellan has generated performance fees for the group $15 million ahead of expectations.