AU Morning Wrap: ASX declines; Lake jumps 4% on Lilac dispute resolution
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• Defensive stocks lead Wall St higher, Goldman loads up on lithium
• SX 200 down 0.02 per cent
• Stocks to watch: Healius, Lake Resources, QBE Insurance
- Moomoo News AU
• Defensive stocks lead Wall St higher, Goldman loads up on lithium
• SX 200 down 0.02 per cent
• Stocks to watch: Healius, Lake Resources, QBE Insurance
- Moomoo News AU
Wall Street Summary
A choppy session saw the major indices finish near intraday highs as gains in defensive sectors helped offset pressure on energy producers.
A choppy session saw the major indices finish near intraday highs as gains in defensive sectors helped offset pressure on energy producers.
The $S&P 500 Index(.SPX.US$ rallied 19 points or 0.48 per cent. The $Dow Jones Industrial Average(.DJI.US$ gained 199 points or 0.59 per cent. The $Nasdaq Composite Index(.IXIC.US$ inched up a point or 0.01 per cent.
The market briefly shed its opening gains after Federal Reserve Bank of Boston President Susan Collins warned the central bank may need to hike its benchmark rate by 75 basis points next month. The market had rallied strongly in recent weeks on hopes for smaller increases after inflation data showed signs of cooling.
AU Market Watch
The $S&P/ASX 200(.XJO.AU$ declined 0.02 per cent after climbing 0.3 per cent in the opening minutes of trade on Monday.
Healius declined 4.8 per cent to $3.16 as it declined to comment on reports that it has reached a deal to sell its day hospital business to Queensland Investment Corporation.
Lake Resources jumped 4.3 per cent to $1.09 after announcing that a contract amendment has been signed to resolve its dispute with Lilac Solutions
Lake Resources jumped 4.3 per cent to $1.09 after announcing that a contract amendment has been signed to resolve its dispute with Lilac Solutions
Stocks to Watch
$Life360 Inc(360.AU$: Shares in Life360 have entered a trading halt pending an announcement about a proposed capital raising.
$Lake Resources NL(LKE.AU$: Lake Resources has advised that a contract amendment has been signed to resolve its dispute with Lilac Solutions, allowing the teams to reset their relationship and focus on the delivery of the Kachi project.
Lake and Lilas agreed to an amended timeline, which both companies are confident can be achieved. Lake will maintain its buy back rights if Lilac does not meet agreed testing criteria in a "timely manner".
Both parties continue work at the Kachi demonstration plant, with performance in line with expectations.
$Healius Ltd(HLS.AU$: Healius has declined to comment on an article published in The Australian which said the company had reached a deal to sell its day hospital business to Queensland Investment Corporation.
$Sandfire Resources Ltd(SFR.AU$: Sandfire Resources has successfully closed the institutional component of its entitlement offer, raising around $147 million at $4.30 per share.
The offer price represents a 10.2 per cent discount to the last closing price of $4.79 on November 17.
$Link Administration Holdings Ltd(LNK.AU$: Link Group has sold 10 per cent of its 42.77 per cent stake in PEXA Group, raising $101.9 million.
The PEXA sell-down was executed at $13.50 per share with settlement expected to occur on Wednesday.
$Insurance Australia Group Ltd(IAG.AU$: Insurance Australia Group has launched a Capital Notes 2 offer to raise $400 million.
The offer forms part of the company's capital management strategy and the proceeds will be used for general corporate purposes and to refinance existing Capital Notes 1 issued in December 2016.
$Perpetual Ltd(PPT.AU$: Perpetual has promoted Vince Pezzullo to head of equities within the company's Australian asset management business.
The announcement follows the resignation of current head of equities, Paul Skamvougeras, who decided to step down from the role at Perpetual Asset Management Australia.
$QBE Insurance Group Ltd(QBE.AU$: QBE Insurance Group has warned that higher-than-expected catastrophe costs have introduced some risk to its full-year outlook.
The company said that to October, the net cost of catastrophe claims in the second half was tracking at around $430 million. The total net cost of catastrophe claims was tracking at $880 million in the year to October.
Ex-dividend: $Elders Ltd(ELD.AU$
Dividends Paid: $Reckon Ltd(RKN.AU$
Commodities
• Iron ore futures fell 0.3% to US$93.65 a tonne.
Optimism around China's property rescue plans helped the steelmaking ingredient post a third straight week of gains, up 3.8% last week
• Oil extended its aggressive selloff, down 7.7% in the last three sessions.
"Crude demand destruction and technical selling sent oil prices sharply lower this week. It was a bloodbath for energy bulls, as US economic activity continues to soften." - Oanda senior market analyst, Ed Moya
"Eventually oil will stabilise, but right now no one wants to try to guess the bottom."
• Gold also extended its losing streak, down 1.6% in the last three days.
"Gold prices are slumping after multiple Fed members continue to push back on the idea that they will soon be ready to pause their tightening cycle. The economic data is telling us a mixed picture right now, but large parts of the labor market and factory activity resilience suggests inflation could be sticky next quarter." - Moya
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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