AU Morning Wrap: ASX down 1%; all sectors falls with miners weighing most

Wall Street Summary
Wall Street reopened after Labor Day under renewed pressure as stronger-than-expected economic data implied interest rates will have to go higher to bring down inflation.

The odds on a 75 basis point rate hike this month jumped from 57 per cent to 72 per cent after data showed the services sector gained momentum last month. The sector accounts for around two-thirds of US economic activity.

The $S&P 500 Index (.SPX.US)$ fell 16 points or 0.41 per cent to its lowest since mid-July. The $Dow Jones Industrial Average (.DJI.US)$ shed 173 points or 0.55 per cent. The $Nasdaq Composite Index (.IXIC.US)$ dropped 86 points or 0.74 per cent.

AU Market Watch
Australia's S&P/ASX 200 is set to slide at the open, adding to losses compiled in the prior day's mid-session turnaround. ASX futures are down by 0.5%, suggesting the benchmark index will follow the path also trod by U.S. stocks following their return to trade from the Labor Day holiday. The ASX 200 fell 0.4% on Tuesday, dropping into negative territory after the Reserve Bank of Australia warned further interest-rate rises were likely.

Australian shares opened lower this morning. The $S&P/ASX 200 (.XJO.AU)$ lost 0.92 per cent to 6763.9 as of 10:24 am.

The second-quarter GDP data is scheduled to be released at 11.30am AEST.

Stocks to Watch
$Metcash Ltd (MTS.AU)$: Metcash has reported strong sales momentum in the first half of the 2023 financial year despite increased supply chain and labour cost pressures. Group sales rose 8.9 per cent in the 17 weeks to August 28 and the grocer said that supply chains and stock availability had improved.

$United Malt Group Ltd (UMG.AU)$: United Malt has declared a "positive" crop outlook in each of its growing regions. "A significant improvement is expected in the volume and quality of the North American barley crop compared to last year."

United Malt forecast Canadian barley production 47 per cent higher than in 2021, at 10.2 million tonnes. England and Scotland recorded good quality and yields with the barley harvest complete or nearly complete.

Separately, United Malt will not need to raise capital.

$Restaurant Brands NZ Ltd (RBD.AU)$: Restaurant Brands New Zealand boss Russel Creedy and its chief financial officer Grant Ellis will retire from the fast food business on March 31 and May 31 respectively.

$Lake Resources NL (LKE.AU)$: Lake Resources appointed Quantum Energy Partners senior adviser David Dickson to the CEO and managing director role on $US1 million a year, plus bonuses and stock.

Ex-dividend: $Amcor PLC (AMC.AU)$, $Austal Ltd (ASB.AU)$, $AUB Group Ltd (AUB.AU)$, $AVJennings Ltd (AVJ.AU)$, $Brambles Ltd (BXB.AU)$, $ClearView Wealth Ltd (CVW.AU)$, $Healius Ltd (HLS.AU)$, $IDP Education Ltd (IEL.AU)$, $Insignia Financial Ltd (IFL.AU)$, $Meridian Energy Ltd (MEZ.AU)$, $Medibank Pvt Ltd (MPL.AU)$, $Pacific Current Group Ltd (PAC.AU)$, $Probiotec Ltd (PBP.AU)$, $Seek Ltd (SEK.AU)$, $Universal Store Holdings Ltd (UNI.AU)$, $Viva Energy Group Ltd (VEA.AU)$

Dividends paid: $Codan Ltd (CDA.AU)$, $Perpetual Credit Income Trust (PCI.AU)$, $SSR Mining Inc (SSR.AU)$

Commodities
• Iron ore futures fell -0.5% to US$97.1 a tonne. "During the week of 29 August to 2 September, participants in the steel and iron ore markets felt less confident about steel demand improving in the short-term, as new COVID-19 cases were identified more frequently in more regions across the country," said Mysteel.

• Oil prices faded. " Despite some better-than-expected US services data, global growth isn't looking good at all and that is trouble for crude prices," said Oanda senior market analyst, Ed Moya.

• Gold continues to stall around US$1,700 as both Treasury yields and the US dollar index climb higher.

Source: Dow Jones Newswires, AFR