AU Morning Wrap: ASX follows Wall Street lower; Santos lifts buyback by $US350m
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 hits four-day losing streak, recession woes are back
• ASX follows Wall Street lower
• Stocks to watch: Santos, Earlypay, Beach Energy
- Moomoo News AU
Wall Street Summary
The S&P 500 fell for a fourth session as recent robust economic data pointed to more rate rises ahead even as companies plan for leaner times and lay off workers.
The S&P 500 fell for a fourth session as recent robust economic data pointed to more rate rises ahead even as companies plan for leaner times and lay off workers.
The $S&P 500 Index (.SPX.US)$ dropped 58 points or 1.44 per cent. The $Dow Jones Industrial Average (.DJI.US)$ shed 351 points or 1.03 per cent. The $Nasdaq Composite Index (.IXIC.US)$ lost 225 points or 2 per cent as growth sectors bore the brunt of the selling.
The Santa Rally remained on hold after a series of business leaders made grim predictions about the outlook for 2023. Jamie Dimon, CEO of JPMorgan Chase, said a recession was likely as inflation erodes consumers' spending power.
AU Market Watch
$S&P/ASX 200 (.XJO.AU)$ opened Wednesday down 0.76 per cent amid another bout of selling on Wall Street as traders fret the US economy is heading towards at least a mild recession in 2023.
Energy stocks fell 1.8 per cent as oil plunged more than 4 per cent before paring some of its losses in New York, closing below $US80 a barrel.
Most other sectors were lower, led by rate-sensitive information technology down 2 per cent. Only materials were higher, up 0.7 per cent, as BHP and Fortescue Metals rose.
Beach Energy led the ASX 200 decliners down 8.1 per cent, following a 4 per cent decline on Tuesday.
Earlypay shares dove 12 per cent after coming out of a trading halt. A material client has called in the administrators.
Stocks to Watch
$Warrego Energy Ltd (WGO.AU)$: $Strike Energy Ltd (STX.AU)$ has secured an approximately 19.9 per cent shareholding and voting power in Warrego Energy after entering into share swap agreements with various shareholders.
Post settlement of the share swaps, Strike says it will become Warrego's largest shareholder and will increase Strike's direct and indirect ownership of EP469, which contains the West Erregulla gas field.
$SkyCity Entertainment Group Ltd (SKC.AU)$: The financial crime watchdog is suing casino operator SkyCity for allegedly allowing patrons to churn dirty cash through its Adelaide gaming rooms.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) filed its case against Skycity in the Federal Court on Wednesday, alleging the casino group facilitated money laundering that amounted to "serious and systemic" breaches of federal law.
$Santos Ltd (STO.AU)$: Santos has announced a further $US350 million increase to its on-market share buyback.
This is in addition to the $US350 million announced in August, which is approximately 98 per cent complete, and brings the total on-market share buyback amount for 2022 to $US700 million.
The additional buyback is expected to commence this month.
$EarlyPay Ltd (EPY.AU)$: Invoice, trade and equipment financier Earlypay has fallen 12 per cent after advising that a material client – RevRoof and its related entity – has called in the administrators.
The company was placed in a trading halt on Tuesday pending a “potential customer development”.
Dividends Paid: $Red Hill Minerals Ltd (RHI.AU)$, $Sunland Group Ltd (SDG.AU)$, $Cobram Estate Olives Ltd (CBO.AU)$
Commodities
• Newcastle coal futures rose 2.1% to US$408.8 a tonne.
• Iron ore futures rose 0.3% to US$108.6 a tonne.
• Oil benchmarks WTI and Brent crude both fell around -4.0% in overnight trade. Both are trading around breakeven year-to-date, down from highs of more than 70%.
"The move from OPEC+ was probably driven by the lack of visibility on China and Russia but as the group has warned in the past, should prices fall too far and the market become imbalanced, it won't wait until the next scheduled meeting to respond. It seems that the only thing guaranteed in the oil market for now is volatility." - Oanda senior market analyst, Craig Erlam
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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