AU Morning Wrap: Weak start after Fed triggers US retreat

Moomoo News AU wrote a column · Apr 6, 2022 08:05

G'day, mooers! Check out the latest news on today's stock market!
• Wall Street retreated on hawkish Fed comments
• Australia shares opened lower on Wednesday; ASX 200 down 0.61 per cent
• Stocks to watch: Virtus Health, Syrah Resources, PolyNovo
- moomoo News AU

AU Morning Wrap: Weak start after Fed triggers US retreat

Wall Street Summary
Rate-sensitive growth stocks sold off after Federal Reserve Governor Lael Brainard said she expected the central bank to start running down its balance sheet rapidly as soon as next month. The yields on ten-year US treasuries flew to three-year highs, driving down tech and other growth sectors seen as most dependent on borrowing.

The $Nasdaq Composite Index (.IXIC.US)$ sank 328 points or 2.26 per cent. The $S&P 500 Index (.SPX.US)$ shed 58 points or 1.26 per cent. The $Dow Jones Industrial Average (.DJI.US)$ dropped 281 points or 0.7 per cent.

AU Market Watch
The Australian share market is poised to open lower on Wednesday following Wall Street's weak closing. The losses in energy stocks are likely to weigh on the stock market as oil prices fell overnight, while renewed fear of a potentially faster global rate hike cycle may keep risk appetite in check.

According to the latest SPI futures, the ASX 200 is likely to open 54 points or 0.7% lower. On Tuesday, the benchmark index rose 0.2% to 7,527.9 points.

Australia shares opened lower this morning. The $S&P/ASX 200 (.XJO.AU)$ lost 0.61 per cent to 7482 as of 10:06 pm.

Stocks to Watch
$Virtus Health Ltd (VRT.AU)$: BGH Capital is hitting back with an $8 a share unconditional bid for Virtus Health. The offer was structured to allow BGH to start buying from Wednesday at $8.

$Syrah Resources Ltd (SYR.AU)$: Syrah Resources' board has approved a final investment decision for the installation of a solar and battery hybrid power system at its Balama graphite operation in Mozambique.

$Polynovo Ltd (PNV.AU)$: PolyNovo has reported record March quarter revenue of $12.26 million in the first three months of the year, up 59.3 per cent on the same period a year ago.

Ex-dividend Companies: $Clover Corp Ltd (CLV.AU)$, $Turners Automotive Group Ltd (TRA.AU)$

Dividends Paid Companies: $CSL Ltd (CSL.AU)$, $Humm Group Ltd (HUM.AU)$, $Emeco Holdings Ltd (EHL.AU)$, $Servcorp Ltd (SRV.AU)$, $Macmahon Holdings Ltd (MAH.AU)$, $Pact Group Holdings Ltd (PGH.AU)$

Commodities
• Iron ore prices remain stable amid limited trading activity.
• Oil prices slip lower as the release of strategic reserves have helped take some pressure off of Russian supply disruptions.
• Gold continues to hold above US$1,900 albeit without much direction.

Source: Dow Jones Newswires, Market Index

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