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The ASX200 closed 0.7% higher, with tech once again in the lead, with investors moving back into tech. This was after a rally by the Nasdaq and coincided with a drop in the US 2-year Treasury yield. Meanwhile utilities declined the most. Investors were also conscious of the RBA’s meeting yesterday. The RBA held the cash rate at 0.1% and mentioned that the Russia – Ukraine war is a major source of uncertainty, considering the supply issues and effects on global energy markets. The bank is expecting inflation to further increase to 3 ¼ %, and then decline to approximately 2 ¾ %over the course of next year.

Looking at the ASX200 leaderboard, Pointsbet Holdings (ASX:PBH) was the top performer, while big tech names also made the top 10, including EML Payments and Tyro Payments, as well as Block (ASX:SQ2), which jumped more than 12% to $175.16 after Macquarie said its share price could rise near 50% within the next year. Among the tech rally, Xero (ASX:XRO) and WiseTech (ASX:WTC) also gained.

The most traded stocks by Bell Direct clients yesterday included Auckland International Airport (ASX:AIA), Transurban Group (ASX:TCL), BHP (ASX:BHP), ANZ (ASX:ANZ) and NAB (ASX:NAB).

European and US markets suffered heavy losses overnight. The Dow Jones lost nearly 600 points, down 1.8%, the S&P500 down 1.6% and the Nasdaq down 1.6%.

The local market is set to drop, with the SPI futures suggesting a 0.92% fall at the open this morning.

What to watch today:

• In economic data, today the GDP growth rate for the fourth quarter will be released.
• In commodities, the oil price continues to move higher, reigniting concerns for interest rates and growth. Oil leapt for than 10% to above US$105 per barrel. Gold is trading higher at its strongest levels since January 2021 and the seaborne iron ore price is sitting at US$143 a tonne.
• Some of the companies set to go ex-dividend today include GQG Partners (ASX:GQG), Link Administration (ASX:LNK), oOh!media (ASX:OML), Platinum Asset Management (ASX:PTM), and Telstra (ASX:TLS).
• Boss Energy (ASX:BOE) is set to report its earnings today.

Trading Ideas:

• Bel Potter maintain their Buy rating on Avita Medical (ASX:AVH) and have slashed their price target from $9 to $4.60. Bell Potter continue to forecast excellent long term growth for AVH, however say it is unlikely to manifest over the next year. AVH last closed at $3.23, implying 42.4% share price growth in a year.
• Trading Central have identified a bullish signal in Vimy Resources (ASX:VMY) indicating its price may rise to $0.26 to $0.28 over 26 days.