AU Morning Wrap: ASX Falls 0.3%; WiseTech Buys Blume for $US414m; QBE Gains
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 slumps on hot producer prices and hawkish Fedspeak
• ASX was last trading down 0.34%, weighed by a 2.6 decline in the info tech • Stocks to watch: QBE, Baby Bunting, WiseTech
- Moomoo News AU
Wall Street Summary
US stocks sagged after unexpectedly strong inflation and unemployment data fuelled fears that the top of this interest rate cycle is further off than markets have priced in. Hawkish comments by Fed policymakers added to down-pressures.
The $S&P 500 Index (.SPX.US)$ declined 57 points or 1.38 per cent. The $Dow Jones Industrial Average (.DJI.US)$ shed 43 points or 1.26 per cent. The $Nasdaq Composite Index (.IXIC.US)$ lost 215 points or 1.78 per cent.
Stocks fell after the biggest increase in wholesale inflation in seven months. Producer prices rose 0.7 per cent in January, rebounding from a 0.2 per cent decline the previous month. Economists surveyed by Dow Jones expected a more modest increase of 0.4 per cent. The report followed hotter-than-expected consumer price inflation earlier in the week.
AU Market Watch
Australian shares opened Friday lower as selling accelerated in the final hour of trading on Wall Street. Traders repositioned for still higher US interest rates after January's producer price report and Fed comments.
The $S&P/ASX 200 (.XJO.AU)$ was last trading down 0.34 per cent, weighed by a 2.6 decline in the info tech sector.
QBE led the gainers, adding 7.7 per cent after unveiling adjusted cash profits for the past year of $US847 million ($1.23 billion), up from $US805 million in the previous corresponding period.
Shares in Baby Bunting fell 9 per cent at the open on Friday after reporting its half-year results and announcing the departure of long-serving chief executive officer Matt Spencer.
Stocks to Watch
$QBE Insurance Group Ltd (QBE.AU)$: QBE forecast mid-to-high single digit gross written premium growth in 2023.
QBE Insurance's annual net profit rose 3 per cent to $770 million in 2022. It declared a final dividend of 30¢ a share, partially franked, up from 19¢.
$GQG Partners Inc (GQG.AU)$: GQG Partners reported positive net inflows of $US8 billion for the year ended December 31 despite what it described as a "challenging market environment" with continued industry outflows and negative market returns.
The firm ended the year with $US88 billion in funds under management, down 3.5 per cent from where it ended the prior year.
$Latitude Group Holdings Ltd (LFS.AU)$: Latitude Financial's full-year profit plunged as the higher interest rate environment hit earnings and forced it to slash its final dividend.
Chief executive Ahmed Fahour, who announced his departure within 12 months at the interim result, will now leave by April as current head of Latitude's money unit, Bob Belan, steps up to succeed him.
$QBE Insurance Group Ltd (QBE.AU)$: Premium increases have accelerated in Australia, insurer QBE says, bucking trends seen in its other regions across the globe.
The detail came as Sydney-based QBE, which insures everything from Australian homes to planes in Russia and US farming crops, unveiled adjusted cash profits for the past year of $US847 million ($1.23 billion), up from $US805 million in the previous corresponding period.
$WiseTech Global Ltd (WTC.AU)$: WiseTech Global will buy Blume Global, a intermodal rail solutions provider, for $US414 million ($600 million) from Apollo, EQT and other minority shareholders. WiseTech will fund the transaction with $US134.8 million from cash reserves, $US155 million of debt from new facilities, and $US124.2 million new WiseTech shares.
This represents a funding mix of 70 per cent cash and 30 per cent shares.
$Baby Bunting Group Ltd (BBN.AU)$: Baby goods retailer Baby Bunting has reported a 67 per cent drop in statutory net profit to $2.7 million. Total sales rose 6.6 per cent to $254.9 million.
Gross margins fell to 37.2 per cent, a decline of 212 basis points. It declared an interim dividend of 2.7¢ a share, fully franked.
Commodities
• Iron ore and industrial metals rallied after China pledged to stimulate the housing market and encourage consumers to spend savings amassed during the pandemic. Plans were outlined yesterday in the Communist Party journal, Qiushi.
The most-traded May iron ore on China's Dalian Commodity Exchange rose 1.8 per cent in daytime trade to 880 yuan (US$128.43) a tonne.
• Gold climbed off a five-week low as the greenback backed off session highs. Gold for April delivery settled US$6.50 or 0.4 per cent ahead at US$1,851.50 an ounce. The NYSE Arca Gold Bugs Index dipped 0.21 per cent.
• Oil eased for a third session following bearish US inventory data on Wednesday. US stockpiles increased by 16.3 million barrels last week, their eighth consecutive increase.
Brent crude settled 24 US cents or 0.28 per cent lower at US$85.14 a barrel. West Texas Intermediate dipped 10 US cents to US$78.49.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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