ASX 200 set to rise strongly: 8 shares to watch

Local shares look set to pick up where they left off yesterday, with the Sydney Futures Exchange pointing to another 49 point or nearly 1% lift when the market opens.

Here’s a recap:

  • FTSE 100 (UK): up 2.27%
  • DAX (Germany): up 0.71%
  • CAC 40 (France): up 1.00%
  • Dow Jones (USA): up 1.33%
  • NASDAQ (USA): up 1.33%

The ASX 200 looks likely to take its lead from its international counterparts again today as equity markets around the world continue to rally following Britain’s shock decision to leave the European Union last week.

While the move was initially met with terror from investors, it seems markets are now coming to terms with the move. It’s also possible that some of the recent gains are in response to renewed expectations of further stimulus being provided by central banks around the world as a result of Brexit.

Overnight, London’s FTSE 100 soared another 2.27%. The London-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) also soared another 2.4% and 3.5% respectively, indicating it could be another positive day on the local market for those miners. This is particularly the case after the iron ore price surged another 3.3% overnight to US$55.66 a tonne, according to The Metal Bulletin.

Defensive shares could also be in for another boost today. Somnomed Limited (ASX: SOM) is one of the stocks that have been on fire in the last few days, together with biopharmaceuticals giant CSL Limited (ASX: CSL).

Investors in the gold sector, on the other hand, will likely be reassessing their strategy after a string of heavy losses. Investors appear more willing to take risk despite Brexit, which has sent shares of businesses such as St Barbara Ltd (ASX: SBM) and Newcrest Mining Limited (ASX: NCM) tumbling in recent days.

Mayne Pharma Group Ltd (ASX: MYX) could also be a focus today after its shares rocketed more than 28% on Thursday. It looks like it will hold onto those gains to begin with and investors will be hopeful for even more gains through the day.

In broker news, tech market-darling Aconex Limited (ASX: ACX) has been given a price target of $8.50 by RBC Capital Markets, which is roughly 21% higher than its current price. The company will likely be in focus today, and possibly still in the coming weeks and months as well.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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