AU Morning Wrap: ASX Rises; Bendigo Bank Rallies 6%
G'day, mooers! Check out the latest news on today's stock market!
• Dow rallies ahead of key inflation data, oil prices bounce
• ASX 200 opens up 0.31 per cent, buoyed by the financials and technology sectors
• Stocks to watch: Bendigo bank, G8 Education, Star Entertainment
- Moomoo News AU
Wall Street Summary
US stocks steadied ahead of the last rate hike of the year and an inflation report that will affect how high rates go next year.
US stocks steadied ahead of the last rate hike of the year and an inflation report that will affect how high rates go next year.
The $S&P 500 Index (.SPX.US)$ bounced 56 points or 1.43 per cent. The $Dow Jones Industrial Average (.DJI.US)$ rose 529 points or 1.58 per cent. The $Nasdaq Composite Index (.IXIC.US)$ added 139 points or 1.26 per cent.
The major indices were coming off their worst week in more than two months. Stocks skidded last week amid fears the Fed's rates outlook will be more hawkish than the market's. Losses last week ranged from 2.77 up to 4 per cent.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ opens 0.31 per cent higher, buoyed by the financials and technology sectors.
Bendigo and Adelaide Bank jumped 6 per cent to $9.58 after reporting that cash earnings climbed 22 per cent to $245 million for the five months to November 30.
G8 Education firmed 1.5 per cent to $1.01 after reporting operating earnings before interest and tax of $71 million year-to-date.
The Star Entertainment Group was flat at $2.58 after ASIC started civil penalty proceedings in the Federal Court against 11 current and former directors and officers for alleged breaches of their duties.
Stocks to Watch
$The Star Entertainment Group Ltd (SGR.AU)$: ASIC has started civil penalty proceedings in the Federal Court against 11 current and former directors and officers of The Star Entertainment Group for alleged breaches of their duties.
$Fonterra Shareholders Fund (FSF.AU)$: New Zealand cooperative Fonterra and Nestlé agreed to sell their Dairy Partners Americas (DPA) Brazil joint venture to French dairy company Lactalis for 700 million reals ($195.1 million).
The deal is expected to be completed by 2023.
$G8 Education Ltd (GEM.AU)$: G8 Education reported operating earnings before interest and tax of $71 million year-to-date and operating net profit of $41 million in a trading update for the period to November 30.
$Chalice Mining Ltd (CHN.AU)$: New metallurgical testing at Chalice's Julimar nickel-copper-platinum project has "highlighted the potential to materially enhance overall metallurgical recoveries from the deposit".
$Bendigo and Adelaide Bank Ltd (BEN.AU)$: Bendigo and Adelaide Bank expects further interest rate rises in the 2023 financial year, taking the cash rate between 3.5 per cent and 4 per cent, and net interest margin "tailwinds" to continue into the second half.
Operating expenses will increase modestly on 2021-22 levels, due to non-lending losses and a higher mix of investment spend being expensed, the bank said.
Ex-dividend: None
Dividends Paid: $Amcor PLC (AMC.AU)$, $Macquarie Group Ltd (MQG.AU)$
Commodities
• Iron ore futures fell 1.0% to US$108.40 a tonne. Some interesting near-term outlook observations from Mysteel include:
".. domestic steel demand is likely to weaken gradually during the traditional off-season for steel consumption with the falling temperatures in northern China and the looming Chinese New Year holiday in late January, which will only lend limited support to steel prices."
• Oil prices bounced around 2% after WTI briefly hit US$70 a barrel on Monday.
"The outage on the Keystone pipeline between Canada and the US could be offering further support for the price, as could renewed Russian threats to cut supply in response to the G7 price cap and refusal to sell to any participating countries." - Oanda senior market analyst, Craig Erlam
• Gold prices tumbled close to 1.0% ahead of key inflation data and central bank meetings.
"It's continuing to see resistance around $1,810 on rallies but there's clearly still plenty of bullish appetite as is evidenced by the series of higher lows over the last few weeks." - Erlam
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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