AU Morning Wrap: ASX to slip as Wall Street snaps two-day rally

Wall Street Summary
The Dow closed slightly lower Wednesday after swinging between gains and losses as Treasury yields resumed their climb after Federal Reserve officials pushed back against bets of a pivot.

The $Dow Jones Industrial Average (.DJI.US)$ was 0.1% lower, or 8 points, the $Nasdaq Composite Index (.IXIC.US)$ was down 0.3%, and the $S&P 500 Index (.SPX.US)$ fell 0.2%.

San Francisco Federal Reserve President Mary Daly said that the Fed's goal to keep tightening monetary policy until interest rates are at a restrictive level "hasn't really changed" , easing investor bets on a Fed pivot. Economic data, meanwhile, showed U.S. services activity rebounded by more than expected in September, and the private labor market remains robust pointing to underlying economic strength.

AU Market Watch

Australian shares are poised to slip after Wall Street turned lower and Treasury yields regained ground as the prospect of higher oil prices and continued Federal Reserve rate hikes weighed on investors.

Australian shares open lower this morning. The $S&P/ASX 200(.XJO.AU)$ lost 0.34 per cent to 6792.6 as of 10:27 am.

Stocks to Watch
$Boss Energy Ltd (BOE.AU)$: Boss Energy says the South Australian government has approved its environmental protection program for its potential Honeymoon Uranium Project near Kalkaroo, South Australia.

$Appen Ltd (APX.AU)$: AI data provider Appen has warned it now expects FY 2022 EBITDA between $US13 million and $US18 million on revenue between $US375 million and $US395 million.

"As noted at the half year, challenging external operating and macro conditions have resulted in weaker digital advertising revenue and a slowdown in spending by some of our major customers," the company said in a statement. "This has impacted our ad-related programs and had a flow on impact to non-ad related programs and some core programs."

$Invictus Energy Ltd (IVZ.AU)$: Invictus Energy says new data shows its Cabora Bassa Project in Zimbabwe has an estimated 1.17 billion barrels of oil gross from five drill-ready prospects in Basin Margin Area.

$Polynovo Ltd (PNV.AU)$: Shares in burns treatment specialist PolyNovo are up 6.5 per cent after it said it booked a record $5.4 million in sales in September to take September quarter sales to $12.5 million.

Ex-dividend: $Qualitas Real Estate Income Fund (QRI.AU)$ , $Webcentral Ltd (WCG.AU)$ , $N1 Holdings Ltd (N1H.AU)$ , $Bisalloy Steel Group Ltd (BIS.AU)$ , $ARB Corp Ltd (ARB.AU)$

Dividends paid: $Fletcher Building Ltd (FBU.AU)$ , $Money3 Corp Ltd (MNY.AU)$ , $Wesfarmers Ltd (WES.AU)$ , $Breville Group Ltd (BRG.AU)$ , $Lifestyle Communities Ltd (LIC.AU)$ , $InvoCare Ltd (IVC.AU)$ , $Eureka Group Holdings Ltd (EGH.AU)$ , $Generation Development Group Ltd (GDG.AU)$ , $Pact Group Holdings Ltd (PGH.AU)$ , $Big River Industries Ltd (BRI.AU)$ , $Woodside Energy Group Ltd (WDS.AU)$ , $Servcorp Ltd (SRV.AU)$ , $Costa Group Holdings Ltd (CGC.AU)$

Commodities
• Iron ore futures traded flat at US$95 a tonne

• Gold prices edged lower, in the opposite direction of bond yields. A strong US private payrolls report reminded investors that the labour market remains strong and the Fed is expected to stay hawkish

• Oil is up almost 10% in the last three sessions

OPEC+ agreed to cut their production target by 2 million barrels a day