AU Morning Wrap: Banks, Miners Lift ASX; May Jobs Data Pending

Moomoo News AU wrote a column · Jun 14, 2023 19:29

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 steady after Fed skips June rate hike
• Banks, miners lift ASX
• Stocks to watch: CSL, Insurance Australia
- Moomoo News AU

AU Morning Wrap: Banks, Miners Lift ASX; May Jobs Data Pending

Wall Street Summary

The $S&P 500 Index(.SPX.US)$ spent the morning in the green, but gyrated after the Fed's 2 p.m. announcement. The central bank held rates steady at between 5% and 5.25%, but signaled that it expects its target to rise to about 5.6% by the end of 2023. In March, the Fed had projected a 5.1% year-end rate, and many traders had hoped that interest rates were already peaking.

The major indexes then pared their losses as Fed Chair Jerome Powell said in a press conference that central bankers believe inflation is in the process of moderating. The S&P rose by less than a tenth of a percentage point and the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ climbed 0.4%. The $Dow Jones Industrial Average(.DJI.US)$ fell 232.79 points, or 0.7%, to 33979.33, though it was dragged down by a decline in UnitedHealth Group stock.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ added 0.2 per cent in early trade as the miners climbed again on hope commodity prices will recover in the second half of 2023.

The big four banks all advanced to help the financials sector add 0.5 per cent.

While healthcare giant $CSL Ltd(CSL.AU)$ lost 2.8 per cent to $279.35 after brokers moved to cut earnings forecasts following yesterday's trading update.

Elsewhere, $Insurance Australia Group Ltd(IAG.AU)$ jumped 2.9 per cent to $5.37.

Stocks to Watch

$Lovisa Holdings Ltd(LOV.AU)$: Broker Citi has taken a second look at the valuation of jewellery retailer Lovisa and weak consumer confidence to downgrade its rating on the stock from neutral to sell.

It also warned of headwinds from minimum wage rises to slash its price target by 38 per cent to $16.

$Patriot Battery Metals Inc(PMT.AU)$: Canada-based lithium hopeful Patriot Battery Metals has announced new drilling results at its Corvette property and says it's on track to announce an initial mineral resource estimate by July.

Hype around the explorer fuelled by broker and capital markets adviser Macquarie comparing its deposit to the famous Greenbushes Mine in Western Australia has seen the stock go gangbusters since a secondary CDI listing on the ASX at 60¢ a share.

$Australian Ethical Investment Ltd(AEF.AU)$: Fund manager Australian Ethical lifted its funds under management 3 per cent to a record $9.03 billion for the quarter to March 31.

It said April and May also saw positive net inflows of $90 million, with underlying net profit before performance fees tipped to reach as high as $11.8 million.

$Decmil Group Ltd(DCG.AU)$: Industrial waste transport group Decmil Group has blamed rising costs for a move to cut its guidance for FY 2023 EBITDA to between $71.5 million and $73.5 million from $64 million to $66 million.

$Australian Vintage Ltd(AVG.AU)$: Wine merchant Australian Vintage Group has flagged a $9 million write down and blamed challenging trading conditions for a decision to suspend its final dividend.

It said net debt is expected to finish between $52 million and $57 million at June 30 and suggested the balance sheet is a priority over dividends.

Trading Ex-div: $Incitec Pivot Ltd(IPL.AU)$