AU Morning Wrap: ASX gains 1% at open; EML dives 30%

Moomoo News AU wrote a column · Oct 31, 2022 07:37

G'day, mooers! Check out the latest news on today's stock market!
• Wall St rallies as Apple earnings save the day
• The ASX 200 has gained 1.03 per cent at the open, tech leads
• Stocks to watch: EML Payments, Coronado.
- moomoo News AU

Wall Street Summary
US stocks closed out a strong week with further gains as economic data bolstered the case for a rates slowdown, while strong earnings from Apple, Intel and oil companies offset a miss from Amazon.

The $Dow Jones Industrial Average (.DJI.US)$ soared 829 points or 2.59 per cent to a sixth straight gain. The $S&P 500 Index (.SPX.US)$ put on 94 points or 2.46 per cent. The $Nasdaq Composite Index (.IXIC.US)$ advanced 310 points or 2.87 per cent.

The Dow's longest daily winning streak since May lifted it 5.7 per cent last week amid growing conviction the worst of this year's bear market has passed. The blue-chip average has risen for four straight weeks, setting it on course for its best month since 1976 and possibly its best October of all time.

AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ has gained 1.03 per cent at the open, tech leads; EML dives 30 per cent.

Stocks to Watch
$Coronado Global Resources Inc (CRN.AU)$: Cashed up coal miner Coronado has not been able to strike a merger deal with Peabody Energy but says talks are "ongoing" as it downgraded coal volumes and treated shareholders to a special dividend.

Potentia Capital is going to have to lift its bid again if it's to acquire ASX-listed Nitro Software.

$Nitro Software Ltd (NTO.AU)$: Nitro has entered a process deed with KKR-backed Alludo, a North American software company, which is getting exclusive due diligence with a bid at $2 a share.

$EML Payments Ltd (EML.AU)$: Shares in EML Payments dove 20 per cent at the open on Monday after the company said it would temporarily stop onboarding new customers, agents and distributors to its UK subsidiary, Prepaid Financial Services Limited, following concerns raised by the UK Financial Conduct Authority.

EML said the measure will allow it to address concerns highlighted by the FCA, which it says are "similar in nature" to those raised by the Central Bank of Ireland relating to Irish subsidiary PFS Card Services.

$Australian Strategic Materials Ltd (ASM.AU)$: Australian Strategic Materials has been placed in a trading halt pending the release of an announcement relating to a "material capital raising".

Ex-dividend: $Autosports Group Ltd (ASG.AU)$

Dividends paid: $Steamships Trading Co Ltd (SST.AU)$, $Magontec Ltd (MGL.AU)$, $Rural Funds Group (RFF.AU)$, $Kelly Partners Group Holdings Ltd (KPG.AU)$

Commodities
• Iron ore futures fell 2.2% to US$78.4 a tonne. Prices are down 17% in the past week to the lowest level since March 2020.

• Oil prices inched lower in volatile trade.

"Oil markets remain volatile as some US oil giants signal modest commitments to boost production, and the global economic outlook continues to dim." - Oanda senior market analyst, Ed Moya.

• Gold prices tumbled below the key US$1,650 level.

"Gold prices softened after another round of US data did not support calls for the Fed to downshift tightening in December. The bullish case for gold is improving as financial markets begin to grow optimistic that the Fed will begin the deliberation of a slower pace of tightening." - Moya.

Source: Dow Jones Newswires, AFR

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