AU Morning Wrap: ASX rises; Tyro rejects takeover bid

Wall Street Summary
US stocks rose as pauses in recent surges in bond yields and crude prices soothed concerns about inflation. Buyers were encouraged by an acknowledgement from the Federal Reserve that rising rates bring risks to the economy.

The $S&P 500 Index (.SPX.US)$ bounced 72 points or 1.83 per cent. The $Dow Jones Industrial Average (.DJI.US)$ gained 436 points or 1.4 per cent. The $Nasdaq Composite Index (.IXIC.US)$ rallied 247 points or 2.14 per cent to its first gain in eight sessions.

AU Market Watch
Australia's S&P/ASX 200 looks set to follow U.S. stocks higher at the open and rally from its lowest close since mid-July. ASX futures are up by 0.4%, suggesting the benchmark index will claw back at least some of the 1.4% it shed on Wednesday amid continuing worries over the economic impact of global interest-rate rises. The ASX 200 is 1.5% lower so far this week and currently on course for a third straight weekly decline. Energy stocks could come under further pressure from lower oil prices.

Australian shares opened higher this morning. The $S&P/ASX 200 (.XJO.AU)$ gained 0.56 per cent to 6766.8 as of 10:16 am.

Stocks to Watch
$Tyro Payments Ltd (TYR.AU)$: Point of sale payments business Tyro has rejected a $1.27 per share takeover bid from private equity group led by Potentia Capital. The deal offered shareholders 100 per cent cash, or 50 per cent cash and scrip in a privatised Tyro.

$Coronado Global Resources Inc (CRN.AU)$: Coronado Global Resources confirmed its offer to buy back up to $US25.2 million of its debt maturing in 2026 with a coupon of 10.75 per cent will expire today. The company said the buyback came in conjunction with the dividend declared earlier this month.

$Challenger Ltd (CGF.AU)$: Challenger Life is looking to raise Australian dollar-denominated subordinated notes for general purposes and capital requirements. The company didn't indicate the amount. Bookbuild of the tier 2 notes will start today. The notes offer a maturity of 15 years with an option to be redeemed in 2027.

$Brickworks Ltd (BKW.AU)$: $Washington H Soul Pattinson & Co Ltd (SOL.AU)$-backed Brickworks is back cracking onto listed robotic bricklayer FBR, sparking fund managers' hopes for a bid.

FBR (née Fastbrick)'s claim to fame has been its dynamically stabilised robots which, it reckons, can build brick structures faster, cheaper and more accurate than human tradies.

Ex-dividend: $APM Human Services International Pty (APM.AU)$, $ASX Ltd (ASX.AU)$, $Beacon Lighting Group Ltd (BLX.AU)$, $Contact Energy Ltd (CEN.AU)$, $CTI Logistics Ltd (CLX.AU)$, $Ebos Group Ltd (EBO.AU)$, $Emeco Holdings Ltd (EHL.AU)$, $G8 Education Ltd (GEM.AU)$, $Globe International Ltd (GLB.AU)$, $Perpetual Ltd (PPT.AU)$, $The Star Entertainment Group Ltd (SGR.AU)$, $Woodside Energy Group Ltd (WDS.AU)$

Dividends paid: $BlackWall Ltd (BWF.AU)$, $Gryphon Capital Income Trust (GCI.AU)$, $Qualitas Ltd (QAL.AU)$, $SG Fleet Group Ltd (SGF.AU)$, $Thorn Group Ltd (TGA.AU)$, $Zimplats Holdings Ltd (ZIM.AU)$

Commodities
• Iron ore futures rose 0.6% to US$97.7 a tonne.

"China's iron ore market is likely to see demand remain steady this month, with support derived from steelmakers resuming production, now that their margins are positive," according to Mysteel's monthly report.

"But any growth in ore demand will hardly be significantly", the report added.

• Oil prices plummeted to levels not seen since late January.

Reuters: "The spectre of a demand-sapping recession across the Western world is closer to becoming reality as soaring inflation and rising interest rates dent consumption," said PVM analyst Stephen Brennock.

• Gold prices rallied as Treasury yields and the US dollar eased.

Source: Dow Jones Newswires, AFR