AU Morning Wrap: ASX opens 1% lower; Viva Energy rises on Coles deal

Wall Street Summary
US stocks slumped as a surge in bond yields to multi-year highs underscored recession worries. Expectations for next month's earnings season took a hit from Ford's warning that inflation and supply-chain issues will add US$1 billion to costs this quarter.

The $S&P 500 Index(.SPX.US)$ sank 44 points or 1.13 per cent. The $Dow Jones Industrial Average(.DJI.US)$ shed 313 points or 1.01 per cent. The $Nasdaq Composite Index(.IXIC.US)$ gave up 110 points or 0.95 per cent.

Treasury yields marched higher into tonight's rates announcement. The yield on two-year government treasuries hit a 15-year high. The ten-year yield touched its highest since 2011. The curve between the two notes remained sharply inverted, a classic signal of possible recession within the next two years.

AU Market Watch
Australian shares are poised to drop at the open, following US stocks lower after investors sold on expectation that the Federal Reserve will further tighten monetary policy at its meeting this week. ASX futures are down by 1.1%, suggesting the benchmark index could lose a large part of the 1.3% it gained in the previous session on strength in commodity and financial stocks.

Australian shares tumbled this morning. The $S&P/ASX 200(.XJO.AU)$ lost 1.06 per cent to 6734.1 as of 10:20 am.

Australia's market operator will close the sharemarket on Thursday (September 22) after Prime Minister Anthony Albanese declared a public holiday for all states and territories in a one-off show of respect to mourn the death of Queen Elizabeth II.

Stocks to Watch
$Pilbara Minerals Ltd(PLS.AU)$: Pilbara Minerals intends to accept the highest bid of $US6988 per dry metric tonne (dmt) for a cargo of 5000 dmt of lithium spodumene at its latest digital auction.

On a pro rata basis for lithia content, and adjusted to be inclusive of freight costs, that equates to a price of $US7708 per dmt.

$Washington H Soul Pattinson & Co Ltd(SOL.AU)$: Diversified investment house, Washington H. Soul Pattinson (WHSP) reported a profit after tax of $834.6 million for the year ended July 31, a 154.4 per cent increase on the prior corresponding period in FY21.

$Brickworks Ltd(BKW.AU)$: Brickworks has reported record statutory net profit after tax (NPAT) of $854 million for the year ended July 31, up 257 per cent on the prior year.

Excluding significant items and discontinued operations, the underlying NPAT from continuing operations was a record $746 million, up 159 per cent.

$Sezzle Inc(SZL.AU)$: Sezzle's underlying merchant sales for August increased 1.1 per cent month-on-month to $US142.8 million ($208.3 million), with total income declining 4.8 per cent to $US9.7 million.

The company said that revenue and cost initiatives to date have had a positive effect on its average monthly burn, defined as total income less transaction related costs less adjusted operating expenses.

$Monadelphous Group Ltd(MND.AU)$: Engineering company Monadelphous Group has secured new contracts and contract extensions totalling approximately $160 million.

The company has been awarded a contract to provide operations, maintenance and industrial services to support Petrofac in the decommissioning of the Northern Endeavour floating production, storage and offtake facility.

$Catapult Group International Ltd(CAT.AU)$: Catapult Group has announced reductions to its cost base that will accelerate a return to positive free cash flow earlier than anticipated.

The company has decided to reduce its accelerated growth investment in a number of areas, including both employee expenses and general overhead.

$Viva Energy Group Ltd(VEA.AU)$: $Coles Group Ltd(COL.AU)$ has entered into a binding agreement to sell its fuel and convenience retailing business to Viva Energy.

The transaction will see Viva Energy own and operate the 710 Coles Express sites currently operated by Coles.

Ex-dividend: $Adbri Ltd(ABC.AU)$, $Apiam Animal Health Ltd(AHX.AU)$, $Atlas Arteria Ltd(ALX.AU)$, $Capitol Health Ltd(CAJ.AU)$, $Cash Converters International Ltd(CCV.AU)$, $COG Financial Services Ltd(COG.AU)$, $Count Ltd(CUP.AU)$, $Count Ltd(CUP.AU)$, $Kelly Partners Group Holdings Ltd(KPG.AU)$, $Lindsay Australia Ltd(LAU.AU)$, $Lycopodium Ltd(LYL.AU)$, $Macmahon Holdings Ltd(MAH.AU)$, $NRW Holdings Ltd(NWH.AU)$, $Shine Justice Ltd(SHJ.AU)$

Dividends paid: $Australian Finance Group Ltd(AFG.AU)$, $AVJennings Ltd(AVJ.AU)$, $Challenger Ltd(CGF.AU)$, $Clinuvel Pharmaceuticals Ltd(CUV.AU)$, $Healius Ltd(HLS.AU)$, $Lendlease Group(LLC.AU)$, $Sonic Healthcare Ltd(SHL.AU)$, $Suncorp Group Ltd(SUN.AU)$, $Telstra Group Ltd(TLS.AU)$, $Veem Ltd(VEE.AU)$

Commodities
• Iron ore futures fell 0.5% to US$98.2 a tonne.

• Oil prices are lower ahead of the Fed's interest rate decision.