AU Morning Wrap: ASX opens 0.5% higher；Coronado falls 7.5% as Peabody merger talks end

Moomoo News AU wrote a column · Nov 6, 2022 17:39

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 rallies despite hot jobs data, US dollar dives
• Resources stocks are broadly higher, helping the ASX 200 to a rise of 0.52 per cent.
• Stocks to watch: Coronado Global Resources, BHP, Westpac
- Moomoo News AU

AU Morning Wrap: ASX opens 0.5% higher；Coronado falls 7.5% as Peabody merger talks end

Wall Street Summary
US stocks broke a four-session losing run as investors weighed a mixed jobs report and a fierce China-inspired rally on commodity markets.

The $S&P 500 Index(.SPX.US)$ bounced 51 points or 1.36 per cent. The $Dow Jones Industrial Average(.DJI.US)$ put on 402 points or 1.26 per cent. The $Nasdaq Composite Index(.IXIC.US)$ gained 132 points or 1.28 per cent.

The expiry of various index and stock options triggered wild swings as the market absorbed mixed signals on employment, a key indicator of the health of the economy. The US economy created an unexpectedly strong 261,000 new jobs last month, well above the 205,000 positions anticipated by economists polled by The Wall Street Journal.

However, the jobless rate rose to 3.7 per cent from 3.5 per cent amid job losses and a contraction in participation. The rate of wage growth dropped below 5 per cent for the first time in almost a year, hinting at a slowdown in a strong labour market.

AU Market Watch
Resources stocks are broadly higher, helping the $S&P/ASX 200(.XJO.AU)$ to a rise of 0.52 per cent to 6928.3.

Coronado Global Resources shares are down 6 per cent this morning after merger talks with Peabody were called off.

BHP Group advanced more than 4 per cent to $40.15, Fortescue Metals added 4 per cent to $16.44 and Rio Tinto climbed almost 3 per cent to $95.45.

Stocks to Watch
$Westpac Banking Corp(WBC.AU)$: Westpac has posted a cash profit of $5.28 billion for the full year, down 1 per cent on the prior corresponding period. The bank’s statutory net profit increased 4 per cent to $5.69 billion.

Westpac's net interest margin fell 17 basis points for the year to 1.87 per cent, but increased 5 basis points in the second half. Costs were down 19 per cent for the year.

$Medibank Private Ltd(MPL.AU)$: Medibank says it won't pay a ransom to hackers who stole the data of as many as 9.7 million Australians and has warned past and present customers they may get a call from the criminals or see their data online.

Australia's biggest health insurer confirmed the hack accessed the name, date of birth, address, phone number and email address for around 9.7 million current and former customers and some of their authorised representatives.

$Polynovo Ltd(PNV.AU)$: Burns treatment company PolyNovo has accelerated its launch in India.

PolyNovo said it estimated it would have seven staff members in the country by the end of December, and was planning for 17 people by the end of March, 2023.

$Coronado Global Resources Inc(CRN.AU)$: Coronado Global Resources has agreed with Peabody Energy Corporation to end discussions about a potential combination of the two companies.

Coronado said this would not impact its fourth quarter plans as outlined in its recent quarterly production report and conference call last week.

$The Star Entertainment Group Ltd(SGR.AU)$: The Star Entertainment Group has been served by Maurice Blackburn with a statement of claim for a securities class action in the Supreme Court of Victoria.

The claim alleges that between March 29, 2016 and March 16, 2022, The Star made misleading representations about its systems and processes for compliance with anti-money laundering and counter-terrorism financing obligations.

$Viva Leisure Ltd(VVA.AU)$: Viva Leisure's September and October annualised revenue run rate was $138.6 million, and its monthly revenue run rate for October $11.8 million. That is up 40.7 per cent on December 2021 on both measures.

Average revenue per member was $15.23 in October, up from $13.79 in December 2021.

Ex-dividend: $ANZ Group Holdings Ltd(ANZ.AU)$, $Champion Iron Ltd(CIA.AU)$, $Macquarie Group Ltd(MQG.AU)$

Dividends Paid: $Myer Holdings Ltd(MYR.AU)$, $COSOL Ltd(COS.AU)$

Commodities
• Iron ore futures rose 0.7% to US$97.95 a tonne, up 7.8% last week.

"Recently released data shows that daily crude output at large and medium-sized mills in China averaged 2.06m tons during October 11 - 20. This is 2% less than was seen during the prior ten days but is up year-on-year by 10%." - Breakwave Advisors.

• Oil prices rallied close to a 2-month high on fears of tight supply as the G7 agree on a fixed price capping mechanism for Russian crude.

US Strategic Petroleum Reserve releases are beginning to end. Since April, approximately 180m barrels have been released.

"$100 oil is coming as the US service sector labor market remains robust and on expectations supplies will remain tight." - Oanda senior market analyst, Ed Moya.

• Gold prices surged despite the stronger-than-expected jobs data.

"After Wall Street digested the NFP report, yields and the dollar reversed. The Fed appears to be on the right path for fighting inflation and that will lead to a weaker economy early next year."- Moya.

Source: Dow Jones Newswires, AFR

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