Stocks to watch this morning

Here are a few stocks making news this morning.

QBE Insurance Group

The falling US Treasury 10-year bond yield has sent QBE Insurance Group’s share price down in the last six sessions. Overnight the Treasury yield gained 6 basis points to close at 2.75 per cent. 

Also adding to QBE’s woes is a strengthening Australian dollar. Comments from Reserve Bank of Australia’s board member, John Edwards has suggested the currency is too high.

Strengthening bond yields and the prospect of a weaker dollar are favourable to QBE. But there remains risk over the long term and these measures can change quickly, disrupting investor views of the company.

It has lost 5.3 per cent since Wednesday last week, closing at $14.70 yesterday.

Mining services

It has been a mixed week for mining service contractors, suggesting reignited interest across the sector could be fading. NRW Holdings Limited and Transfield Services have lost 6.37 per cent and 7.06 per cent over the last five days of trade respectively.

Confidence over commodity prices and new contract offerings has been supportive to the sector, but interest appears to be fading for some companies.

Companies with only a small exposure to the mining sector are faring much better – these include Lend Lease Group, Downer EDI Limited and Bradken Limited.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles