AU Morning Wrap: ASX edges up; Lake Resources jumps 15% on progresses on Kachi lithium project

Wall Street Summary
US stocks slumped as a profit warning from FedEx compounded doubts about the health of the global economy ahead of a Federal Reserve rates decision.

The $S&P 500 Index(.SPX.US)$ dropped 28 points or 0.72 per cent. The $Dow Jones Industrial Average(.DJI.US)$ shed 139 points or 0.45 per cent. The $Nasdaq Composite Index(.IXIC.US)$ lost 104 points or 0.9 per cent.

FedEx tumbled 21.4 per cent to its worst loss on record after withdrawing its full-year guidance. The shipping company said demand had dropped off as the global economy "significantly worsened". CEO Raj Subramaniam told CNBC a worldwide recession was likely.

AU Market Watch
Australian shares look likely to open flat following sharp losses at the end of last week. Futures are flat, suggesting investors may adopt a watching brief when the S&P/ASX 200 opens. The benchmark index shed 1.5% on Friday to round out a 2.25% decline for the week.

Australian shares opened higher this morning. The $S&P/ASX 200(.XJO.AU)$ gained 0.15 per cent to 6749.3 as of 10:16 am.

Stocks to Watch
$Imugene Ltd(IMU.AU)$: Imugene received the licence from Australia's Gene Technology Regulator to expand its Vaxinia phase 1 clinical trial to treat cancer in Australia. The trials started in the US in May. The study aims to recruit 100 patients across 10 clinical trial sites in the United States and Australia and is expected to run for 24 months. It is funded from existing budgets and resources.

$Regal Partners Ltd(RPL.AU)$: Regal Partners was awarded a mandate worth more than $420 million from an unnamed local superannuation fund for its Australian long-short equity strategy.

$Link Administration Holdings Ltd(LNK.AU)$: Link said Dye & Durham rejected the UK Financial Conduct Authority's conditions regarding the proposed $2.5 billion buyout.

The Link Group board said it was unable to recommend the new proposal and was now evaluating alternatives, including an in specie distribution of a minimum of 80 per cent of Link Group's shareholding in PEXA.

$Lake Resources NL(LKE.AU)$: Lake Resources has completed the construction of the facility to house the Lilac Solutions demonstration plant at the Argentinian Kachi project. Dry commissioning of the plant started, and the wet commissioning phase is due to start on September 22, taking the start of on-site processing of Kachi brines early October.

It is anticipated that the first 2000 litres of lithium concentrate produced from the demonstration plant will be sent for conversion into Lithium Carbonate once delivered. Lake expects the final lithium product to be qualified by a tier 1 battery maker to validate product specifications.

$Origin Energy Ltd(ORG.AU)$: Origin Energy will divest 100 per cent of its interest in the Beetaloo Basin and will exit its upstream exploration permits as the company focuses on energy transition.

Regional Express said the Foreign Investment Review Board approved its planned acquisition of National Jet Express, the regional services arm of Cobham, focusing on fly-in-fly-out activities.

$Regional Express Holdings Ltd(REX.AU)$: Rex expects the purchase to be completed by September 30, having earlier received no objection from the Australian Consumer and Competition Commission.

Rex noted there was media speculation that Virgin was assessing a purchase of Rex. Rex does not comment on market speculation or rumours and said it was up to Virgin to comment on this matter.

$Synlait Milk Ltd(SM1.AU)$: Synlait Milk has completed two key projects in its decarbonisation plan. The two projects will enable a reduction of scope 1 and 2 greenhouse gas (GHG) emissions by 38,000tCO2e in FY23, progressively increasing to 58,000tCO2e in FY26, when they are expected to reach full capacity.

Ex-dividend: $IPD Group Ltd(IPG.AU)$, $Qube Holdings Ltd(QUB.AU)$, $Service Stream Ltd(SSM.AU)$

Dividends paid: $Blackmores Ltd(BKL.AU)$, $Carlton Investments Ltd(CIN.AU)$, $Johns Lyng Group Ltd(JLG.AU)$, $Objective Corp Ltd(OCL.AU)$, $SDI Ltd(SDI.AU)$, $Summerset Group Holdings Ltd(SNZ.AU)$, $TerraCom Ltd(TER.AU)$

Commodities
• Iron ore futures fell 1.5% last Friday to US$99.05 a tonne.