AU Morning Wrap: ASX climbs 1.5% on Wall St rally; tech stocks jump

Moomoo News AU wrote a column · Oct 18, 2022 07:31

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 and Nasdaq surge thanks to strong bank earnings
• ASX climbs 1.5 per cent on Wall Street rally
• Stocks to watch: Westpac, Tyro Payments, Hub24
- moomoo News AU

Wall Street Summary
US stocks surged as investors embraced earnings beats from two major banks and news that the UK will abandon most of a tax plan that caused major ructions on financial markets. Treasury yields retreated, easing pressure on growth sectors.

The $S&P 500 Index (.SPX.US)$ rallied 95 points or 2.65 per cent. The $Dow Jones Industrial Average (.DJI.US)$ gained 551 points or 1.86 per cent. The $Nasdaq Composite Index (.IXIC.US)$ jumped 354 points or 3.43 per cent.

AU Market Watch
Australian shares opened Tuesday higher after the S&P 500 rallied and the reversal of the UK's vast fiscal stimulus bolstered global sentiment.

The $S&P/ASX 200 (.XJO.AU)$ rose 1.54 per cent to 6,766.7 at the open led by tech, real estate and financials. Only energy was lower, down 0.1 per cent.

Stocks to Watch
$Westpac Banking Corp (WBC.AU)$: Westpac has confirmed it is in talks to buy payments business Tyro Payments, in a move that could help the Sydney-based bank leapfrog Commonwealth Bank in the scale of its payments terminal business.

$Austal Ltd (ASB.AU)$: Austal has been fined $650,000 after the Federal Court found the ship building company contravened continuous disclosure laws, ASIC said in an announcement.

$Treasury Wine Estates Ltd (TWE.AU)$: Treasury Wines says first quarter 2023 trading conditions and group earnings were in line with expectations ahead of its annual general meeting.

The company confirmed it was on track to deliver strong growth and earnings margin expansion towards the 25 per cent plus group target in the 2023 financial year.

$Brambles Ltd (BXB.AU)$: Brambles has confirmed its guidance for financial 2023 of sales growth at 7 per cent to 10 per cent and underlying profit growth at 8 per cent to 11 per cent. It also expects improved free cashflow after dividends, though technically still in “net outflow”.

$HUB24 Ltd (HUB.AU)$: Hub24 reported net inflows of $3 billion for the first quarter of the 2023 financial year, down 1.6 per cent on the prior corresponding period (pcp).

Average monthly net inflows for FY23 to date are $995 million, up 1.7 per cent from FY22.

Ex-dividend: $K&S Corp Ltd (KSC.AU)$

Dividends paid: $Qube Holdings Ltd (QUB.AU)$

Commodities
• Iron ore futures rose 0.2% to US$94.8 a tonne. China's steel prices eased in over 10-14 October.

"Market sentiment weakened with steel demand waning during the survey period, partly due to the resurgence of covid cases across the country," Mysteel Global noted.

• Oil prices traded flat, down from session highs of 1.7%.

"It's been another turbulent few weeks in oil markets from global growth concerns to super-sized OPEC+ output cuts and it seems they're yet to fully settle down," said Oanda senior market analyst, Ed Moya.

"Whether that will satisfy the oil alliance only time will tell but there will be some relief that it's not back in triple figures already, even if that is a result of the ever-worsening economic outlook."

• Gold inched higher but well off session highs.

"Lower global yields and a slightly softer dollar are probably behind the move, with traders no doubt hoping that peak inflation and rate pricing are nearly in sight," said Moya.

Source: Dow Jones Newswires, AFR

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