AU Morning Wrap: ASX opens higher; Magellan sheds assets

Wall Street Summary
US stocks rebounded from two days of weakness as economic data soothed recession fears and earnings season delivered more winners than losers. Energy prices retreated after US stockpiles unexpectedly increased and the Organization of the Petroleum Exporting Countries agreed to increase supply.

The $S&P 500 Index (.SPX.US)$ rallied 64 points or 1.56 per cent. The $Dow Jones Industrial Average (.DJI.US)$ gained 416 points or 1.29 per cent. The $Nasdaq Composite Index (.IXIC.US)$ advanced 319 points or 2.59 per cent.

AU Market Watch
Australia's S&P/ASX 200 looks set to rebound at the open after U.S. stocks rose on better-than-expected earnings reports and services data. ASX futures are up by almost 0.5%, pointing to a rebound from Wednesday's 0.3% fall. A pullback in ASX 200 financial stocks, which had been rallying amid rising interest rates, snapped the benchmark index's six-day winning streak. Lower iron-ore and oil prices could weigh on Australian commodity stocks.

Australian shares opened higher this morning. The $S&P/ASX 200 (.XJO.AU)$ gained 0.39 per cent to 7003.2 as of 10:18 am.

Stocks to Watch
$NRW Holdings Ltd (NWH.AU)$: NRW Holdings, a mining and construction contractor based in Perth, has upgraded its guidance ahead of its 2022 financial year results to reflect higher-than-expected profits for the year. The company said earnings before interest, tax, depreciation and amortisation would likely reach $157 million for the year, just north of the prior guidance range of $150 million to $155 million.

$Magellan Financial Group Ltd (MFG.AU)$: Magellan Financial Group assets under management fell $1.1 billion to $60.2 billion in July, driven by net outflows from institutional clients, the company said on Thursday.

$Endeavour Group Ltd (EDV.AU)$: UBS has downgraded drinks and gaming business Endeavour Group from a neutral rating to a sell rating and has warned the company faces headwinds from slowing growth in its gaming arm and higher costs.

$Centuria Industrial REIT (CIP.AU)$: Net profit for the Centuria Industrial real estate investment trust fell 40 per cent to $367.5 million in the 2022 financial year as revenues slipped by more than a quarter to $487.1 million.

Ex-dividend: $New Energy Solar Ltd (NEW.AU)$

Dividends paid: $African Energy Resources Ltd (AFR.AU)$, $Prospect Resources Ltd (PSC.AU)$, $Uniti Group Ltd (UWL.AU)$

Commodities
• Iron ore futures tumbled -3.8% to US$110 a tonne.
• Oil prices briefly rallied after OPEC+ proposed an output hike of 100,000 barrels a day, the smallest in OPEC history. Prices plummeted after poor gasoline demand data from the US and bearish data from the EIA.
• Gold prices are starting to soften as risk appetite improves, Treasury yields rise and the US dollar rebounds.

Source: Dow Jones Newswires, AFR