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Morning Bell 21 December

Jessica Amir
December 21, 2020

The ASX200 is eyeing a fall of 0.2% at the open following last week’s 0.5% gain.

With economic growth data in the spotlight in the US, UK and in Australia, we will learn how we splurged on retail sales in November.

Today all eyes will be on the increased restrictions in NSW, with some thinking restrictions will tighten again before Christmas. Investors will also be weighing up that a US stimulus deal has not yet been agreed upon and that the US could soon have another vaccine in circulation, as the FDA approved Moderna’s vaccine as being ‘safe and effective’.

What to watch today:

  • Potential selling in travel and tourism stocks. All eyes will be on Webjet (ASX:WEB), Qantas (ASX:QAN) and Sydney Airport (ASX:SYD).
  • As people spend more time at home and stock up for Christmas, keep an eye on Woolworths (ASX:WOW) and Coles (ASX:COL).
  • All eyes will be on healthcare stocks as COVID-19 resurges in NSW like Blackmores (ASX:BKL), Fisher & Paykel (ASX:FPH) and Ansell (ASX:ANN).

Local trading ideas:

  • Respiratory mask company CleanSpace (ASX:CSX) is a Bell Potter buy and was given a new $7.65 target. That implies 18% upside in a year as CleanSpace upgraded its earnings guidance for the second time this year.
  • UBS called Mineral Resources (ASX:MIN) a buy for the first time, giving the mining services business a $41.90 price target.
  • Citi increased Bapcor’s (ASX:BAP) price target to $8.85 and reiterated its buy rating.
  • Tabcorp (ASX:TAH), Vita Life Sciences (ASX:VLS) and Elders (ASX:ELD) are all showing bullish charting signals according to Trading Central.

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