AU Morning Wrap: Tyro Sinks 20%; Gas Stocks Lead Losses
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 sold off on hot producer inflation
• The ASX dropped 0.7 per cent, weighed down by heavy losses across the utilities sector
• Stocks to watch: Tyro Payments, Nitro Software, AUB Group
- Moomoo News AU
• S&P 500 sold off on hot producer inflation
• The ASX dropped 0.7 per cent, weighed down by heavy losses across the utilities sector
• Stocks to watch: Tyro Payments, Nitro Software, AUB Group
- Moomoo News AU
Wall Street Summary
US stocks rounded off a losing week with another down-leg as mixed economic data failed to clarify the likely outlook for interest rates. The Fed meets tomorrow for a two-day meeting that is expected to conclude with a 50 basis points rate hike.
US stocks rounded off a losing week with another down-leg as mixed economic data failed to clarify the likely outlook for interest rates. The Fed meets tomorrow for a two-day meeting that is expected to conclude with a 50 basis points rate hike.
The $S&P 500 Index(.SPX.US$ fell away in the final hour of trade to a loss of 29 points or 0.73 per cent. The $Dow Jones Industrial Average(.DJI.US$ declined 305 points or 0.9 per cent. The $Nasdaq Composite Index(.IXIC.US$ shed 77 points or 0.7 per cent.
Apprehension about tomorrow's consumer inflation data was sharpened by a larger increase in producer prices than economists expected. Wholesale prices ticked up 0.3 per cent last month, versus expectations for a rise of 0.2 per cent. Previous readings for October and September were revised up to 0.3 per cent from initial estimates of 0.2 per cent.
AU Market Watch
The $S&P/ASX 200(.XJO.AU$ dropped 0.7 per cent in the opening minutes of trade on Monday, weighed down by heavy losses across the utilities sector.
Gas stocks declined following the federal government's intervention in the gas market; Origin Energy dropped 6.6 per cent to $7.28 and AGL Energy fell 6.4 per cent to $7.49.
Tyro Payments plunged 19.8 per cent to $1.19 after rejecting a revised takeover offer from Potentia Capital and announcing that second potential bidder Westpac Banking Corporation walked away. Westpac eased 0.3 per cent to $23.36.
Nitro Software rose 4.2 per cent to $2.22 after unanimously recommending that shareholders back a revised takeover bid from Alludo of $2.15 a share.
AUB Group declined 1.4 per cent to $22.70 as it split its FY23 guidance.
Stocks to Watch
$Rio Tinto Ltd(RIO.AU$: Rio Tinto has received the required support from Turquoise Hill Resources minority shareholders to acquire the Canadian company, ending its protracted bid.
Rio Tinto already owned almost 51 per cent of Toronto Stock Exchange-listed Turquoise Hill and wanted to acquire the remaining 49 per cent.
The transaction was expected to be completed this week.
$Endeavour Group Ltd(EDV.AU$: The ACCC has raised preliminary competition concerns with Endeavour Group's proposed acquisition of the Beachfront Hotel in Rapid Creek, just north of Darwin.
"We are concerned that this proposed acquisition is likely to substantially lessen competition in the supply of takeaway liquor in the local area," ACCC commissioner Liza Carver said.
$St Barbara Ltd(SBM.AU$: $Genesis Minerals Ltd(GMD.AU$ and St Barbara have agreed to merge which will see the latter acquire Genesis via a scheme of arrangement and be re-named Hoover House.
St Barbara will also undertake a demerger of assets including Atlantic and Simberi that will be held in a company to be known as Phoenician Metals which will list on the ASX.
$AVZ Minerals Ltd(AVZ.AU$: Suspended lithium explorer AVZ Minerals kept an ownership dispute over rights to 15 per cent of the Manono lithium project – which has access to a major resource of the vital battery metal – hidden from investors for nearly 10 months, new information shows.
$Nitro Software Ltd(NTO.AU$: Nitro Software has unanimously recommended that shareholders back a revised takeover bid from Alludo of $2.15 a share.
The new proposal represents a 7.5 per cent increase on Potentia Capital’s $2 a share bid that was lobbed last week.
$AUB Group Ltd(AUB.AU$: AUB Group has clarified its full-year guidance after a wide disparity in analysts’ views about the split between its underlying net profit after tax (UNPAT) in the first and second half of the year.
AUB said it expected UNPAT in the range of $41.5 million to $44.5 million for the first half of the year, representing 35.5 per cent to 45.3 per cent growth over the prior corresponding period.
$Westpac Banking Corp(WBC.AU$: Westpac said it had ended takeover discussions with Tyro Payments after undertaking due diligence on the company.
Ex-dividend: None
Dividends Paid: $Hancock & Gore Ltd(HNG.AU$, $Washington H Soul Pattinson & Co Ltd(SOL.AU$
Commodities
• Iron ore futures fell 0.8% to US$110.80 a tonne.
Chinese banks opened more than 3tn yuan (US$431bn) in lines of credit for real estate companies, according to Nikkei Asia.
• Oil closed around breakeven after a choppy session. Prices initially rallied after President Putin said Russia could cut oil production in response to the G-7 price cap.
"The short-term crude demand outlook has deteriorated significantly as no one has a strong handle on how bad a recession will hit the US economy … Energy traders are going to trade very technically here and probably look to defend the $70 level for WTI crude." - Oanda senior market analyst, Ed Moya
• Gold extended gains despite a hotter-than-expected producer price index report.
"Gold might struggle for meaningful moves until we get the last key piece of inflation data before the Fed meets." - Moya
"This producer price report will have many expecting the CPI report to remain stubbornly hot, which could tilt the scales for the Fed to do more tightening beyond February." - Moya
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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