AU Morning Wrap: ASX rises; Telix dives 11% after pulling European marketing application

Wall Street Summary
Wall Street has sunk deeper into a bear market, with the S&P 500 recording its lowest close in two years as Federal Reserve policy makers showed an appetite for more interest rate hikes, even at the risk of throwing the US economy into a downturn.

Most of 11 S&P 500 sector indexes fell, with utilities and consumer staples weighing heavily. The energy sector index rallied after Sweden launched a probe into possible sabotage after major leaks in two Russian pipelines that spewed gas into the Baltic Sea.

The $S&P 500 Index(.SPX.US)$ lost 6.49 points, or 0.18 per cent, to end at 3,648.55 points, while the $Nasdaq Composite Index(.IXIC.US)$ gained 30.73 points, or 0.28 per cent, to 10,833.65 and the $Dow Jones Industrial Average(.DJI.US)$ fell 112.54 points, or 0.38 per cent, to 29,148.27.

AU Market Watch
Australian shares are poised to open lower after Wall Street closed mixed. The S&P 500 ended lower in a choppy session.

ASX futures were down 40 points or 0.61 per cent to 6466 near 6.30am AEST.

Australian shares open higher this morning. The $S&P/ASX 200(.XJO.AU)$ gained 0.18 per cent to 6507.8 as of 10:16 am.

Stocks to Watch
$Apollo Tourism & Leisure Ltd(ATL.AU)$: Campervan rental group Apollo Tourism & Leisure has entered a trading halt pending the Australian Competition and Consumer Commission's decision about its proposed merger with Tourism Holdings, expected to be released on Thursday.

$Telix Pharmaceuticals Ltd(TLX.AU)$: ASX-listed oncology business Telix Pharmaceuticals has withdrawn its application for marketing authorisation for Illuccix in Europe in what it describes as an "unexpected" and "extremely disappointing" result.

$AMA Group Ltd(AMA.AU)$: Smash repair chain AMA Group has announced the divestment of FluidDrive for $2.45 million to focus on collision repair. FluidDrive is a remanufactured transmission specialist.

The divestment follows the sale of AMA Group's automotive components and accessories division (ACAD) businesses (excluding ACM Auto Parts and FluidDrive) in the second quarter of financial year 2020.

$BUBS Australia Ltd(BUB.AU)$: ASX-listed infant formula company Bubs has entered a trading halt before an announcement about a new joint venture arrangement for the manufacture and distribution of Bubs' branded products in China.

The trading halt will remain in place until the announcement or the commencement of trading on Thursday.

$BHP Group Ltd(BHP.AU)$: Chilean regulatory uncertainties that have held up some investments in the biggest copper-producing nation are dissipating, according to top mining company BHP Group.

In a referendum earlier this month, Chileans overwhelmingly rejected a proposed new constitution, while authorities are showing their willingness to receive feedback on planned tax hikes, BHP President Minerals Americas Ragnar Udd said Tuesday.

$Mayne Pharma Group Ltd(MYX.AU)$: Shawn Patrick O'Brien will commence as chief executive of Mayne Pharma from October 1 after the retirement of Scott Richards.

Ex-dividend: $Clime Investment Management Ltd(CIW.AU)$, $Cedar Woods Properties Ltd(CWP.AU)$, $Fonterra Shareholders Fund(FSF.AU)$, $Myer Holdings Ltd(MYR.AU)$

Dividends paid: $Ampol Ltd(ALD.AU)$, $Amcor PLC(AMC.AU)$, $ASX Ltd(ASX.AU)$, $Coles Group Ltd(COL.AU)$, $Downer EDI Ltd(DOW.AU)$, $Ironbark Capital Ltd(IBC.AU)$, $VGI GLOBAL FPO(VG1.AU)$, $Worley Ltd(WOR.AU)$

Commodities
• Iron ore futures rose 0.01% on Tuesday to US$98.6 a tonne.

"Iron ore prices may strengthen along with steel products' price trend, with a high replenishment demand before the Chinese National Day Holiday (1 - 7 Oct) and the increasing downstream demand," said Mysteel.

• Oil prices bounced 2.5% to US$85.9 a barrel after sliding 7.1% in the previous two sessions.

"The prospect of a deeper economic slowdown, perhaps even global recession, has naturally turned traders more bearish on the price of oil," said Oanda senior market analyst, Ed Moya.

"Of course, there is another side to that equation, supply. The message from OPEC+ earlier this month was quite clear; it stands ready to adjust supply if fundamentals change or volatility continues and prices no longer reflect the situation."

• Gold bounced to session highs of US$1,642 but faded back to the US$1,620 level.

Source: Dow Jones Newswires, AFR