AU Morning Wrap: ASX declines; Lake jumps 4% on Lilac dispute resolution

Wall Street Summary
A choppy session saw the major indices finish near intraday highs as gains in defensive sectors helped offset pressure on energy producers.

The market briefly shed its opening gains after Federal Reserve Bank of Boston President Susan Collins warned the central bank may need to hike its benchmark rate by 75 basis points next month. The market had rallied strongly in recent weeks on hopes for smaller increases after inflation data showed signs of cooling.

Healius declined 4.8 per cent to $3.16 as it declined to comment on reports that it has reached a deal to sell its day hospital business to Queensland Investment Corporation.

Lake Resources jumped 4.3 per cent to $1.09 after announcing that a contract amendment has been signed to resolve its dispute with Lilac Solutions

Lake and Lilas agreed to an amended timeline, which both companies are confident can be achieved. Lake will maintain its buy back rights if Lilac does not meet agreed testing criteria in a "timely manner".

Both parties continue work at the Kachi demonstration plant, with performance in line with expectations.

The offer price represents a 10.2 per cent discount to the last closing price of $4.79 on November 17.

The PEXA sell-down was executed at $13.50 per share with settlement expected to occur on Wednesday.

The offer forms part of the company's capital management strategy and the proceeds will be used for general corporate purposes and to refinance existing Capital Notes 1 issued in December 2016.

The announcement follows the resignation of current head of equities, Paul Skamvougeras, who decided to step down from the role at Perpetual Asset Management Australia.

The company said that to October, the net cost of catastrophe claims in the second half was tracking at around $430 million. The total net cost of catastrophe claims was tracking at $880 million in the year to October.

Optimism around China's property rescue plans helped the steelmaking ingredient post a third straight week of gains, up 3.8% last week

• Oil extended its aggressive selloff, down 7.7% in the last three sessions.

"Crude demand destruction and technical selling sent oil prices sharply lower this week. It was a bloodbath for energy bulls, as US economic activity continues to soften." - Oanda senior market analyst, Ed Moya

"Eventually oil will stabilise, but right now no one wants to try to guess the bottom."

• Gold also extended its losing streak, down 1.6% in the last three days.

"Gold prices are slumping after multiple Fed members continue to push back on the idea that they will soon be ready to pause their tightening cycle. The economic data is telling us a mixed picture right now, but large parts of the labor market and factory activity resilience suggests inflation could be sticky next quarter." - Moya