AU Morning Wrap: Flat Start for ASX Shares; Magellan Falls 5%

US stocks retreated as investors factored in higher interest rates for longer as economic data underscored the strength of the labour market, and Federal Reserve policy-makers talked tough on inflation. A measure of private employment and claims for unemployment benefits both came in stronger than economists expected.

Private employment expanded by 235,000 jobs last month, well ahead of the 150,000 new positions anticipated by economists polled by Reuters. A separate report showed the number of Americans filing for unemployment benefits for the first time dropped last week to a three-month low. A sub-index of lay-offs fell 43 per cent, indicating a stubbornly resilient labour market in the face of last year's aggressive rate hikes.

Magellan Financial Group fell 5 per cent to $9.21 on its latest decline in funds under management and immaterial performance fees.

BHP Group rose 2 per cent to $46.99.

The outflows coupled with falling markets has resulted in assets under management falling by $4.9 billion from $50.2 billion to $45.3 billion. That's a near 10 per cent decline for Magellan, which had an average assets under management balance of $112.7 billion in the last six months of the previous year.

That's based on Strike's closing share price of 37.5¢. "Strike continues to believe that Strike's all scrip offer of one Strike share per Warrego share currently represents the best value for all Warrego shareholders," Strike said in its supplementary bidder's statement.

• Oil rose for the first time in three sessions after a leak forced a shutdown at major US fuel pipeline. The Colonial Pipeline, which carries gasoline north from Texas, was forced to close one of its lines for unplanned maintenance following a spillage in Virginia. The news helped crude prices steady after losing 9 per cent in two sessions.

• Gold fell to its first loss in five sessions as treasury yields and the US dollar rallied. Prices closed this week at their highest since mid-June.

• Iron ore declined ahead of this month's Lunar New Year holidays in China. The most-traded May contract on the Dalian Commodity Exchange ended daytime trade 1.2 per cent weaker at 840 yuan (US$122.23) a tonne.